Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, April 30:
Teradyne (TER - Free Report) : This company, which designs, develops, manufactures and sells automated test equipment and robotics products, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.3% over the last 60 days.
Teradyne’s shares gained 22.8% over the last three months compared with the S&P 500’s gain of 2.3%. The company possesses a Momentum Score of A.
ABB (ABBNY - Free Report) : This leading technology company, which provides products and services that can be used in automated manufacturing, providing digital solutions, electrification of industry and transport and enhancing productivity, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.6% over the last 60 days.
ABB’s shares gained 12.2% over the last three months compared with the S&P 500’s gain of 2.3%. The company possesses a Momentum Score of A.
Kforce (KFRC - Free Report) : This company, which provide professional staffing services and solutions to clients on both a temporary and permanent basis through our Technology and Finance and Accounting segments, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.5% over the last 60 days.
Kforce’s shares gained 29.2% over the past three months compared with the S&P 500’s gain of 2.3%. The company possesses a Momentum Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check out this week’s current list of Best Stocks to Buy Now.
Learn more about the Momentum score and how it is calculated here.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at ABB (ABBNY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. ABB currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ABBNY is a promising momentum pick, let's examine some Momentum Style elements to see if this industrial automation company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For ABBNY, shares are up 3.24% over the past week while the Zacks Manufacturing - Electronics industry is up 2.1% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.01% compares favorably with the industry's 8.24% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of ABB have risen 12.52%, and are up 83.77% in the last year. On the other hand, the S&P 500 has only moved 2.81% and 29.8%, respectively.
Investors should also pay attention to ABBNY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ABBNY is currently averaging 223,929 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ABBNY.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ABBNY's consensus estimate, increasing from $3.17 to $3.79 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ABBNY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep ABB on your short list.
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is ABB (ABBNY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
ABB is a member of our Industrial Products group, which includes 181 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ABB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ABBNY's full-year earnings has moved 24.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ABBNY has gained about 36.5% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 16.1% on average. This shows that ABB is outperforming its peers so far this year.
CECO Environmental (CECO - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.1%.
Over the past three months, CECO Environmental's consensus EPS estimate for the current year has increased 12.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, ABB belongs to the Manufacturing - Electronics industry, a group that includes 14 individual companies and currently sits at #163 in the Zacks Industry Rank. On average, stocks in this group have gained 23.4% this year, meaning that ABBNY is performing better in terms of year-to-date returns.
On the other hand, CECO Environmental belongs to the Pollution Control industry. This 5-stock industry is currently ranked #178. The industry has moved +1% year to date.
Investors interested in the Industrial Products sector may want to keep a close eye on ABB and CECO Environmental as they attempt to continue their solid performance.
The logo of Swiss power technology and automation group ABB is seen at the Swiss Economic Forum (SEF) conference in Interlaken, Switzerland May 24, 2019. REUTERS/Arnd Wiegmann/File Photo Purchase Licensing Rights, opens new tab
CompaniesZURICH, May 11 (Reuters) - ABB (ABBN.S), opens new tab will invest about $200 million to expand production of medium-voltage grid equipment in Europe to meet rising power demand from data centres, electric cars and industry, the Swiss engineering group said on Monday.
The investment will boost production capacity for distribution equipment used by power networks to supply factories, hospitals and large buildings, ABB said.
The three-year programme includes $100 million for a new factory in Dalmine, northern Italy, and another $100 million to expand plants in Bulgaria, Finland, Germany, Norway and Poland.
The investments will increase ABB's European production capacity for medium-voltage products by between 50% and 300%, depending on the product line, and create about 800 jobs.
Adrian Guggisberg, head of ABB's Distribution Solutions division, told Reuters the company was responding to big increases in demand from utilities and grid operators.
ABB's supplies many of Europe's largest utilities including Germany's E.ON and France's Enedis, part of EDF.
"The demand for electrification is going up and up," Guggisberg said, adding it was not a short-term trend.
Instead, it reflected changes including the building of data centres to support artificial intelligence, increased use of electric vehicles and heat pumps, and the decarbonisation of industry, he said.
"There is more demand for heating and cooling, and also onshoring of industries," Guggisberg added.
Electricity is expected to account for nearly 30% of final energy use by 2030, up from about 20% today.
Electricity demand is growing faster than overall energy usage, according to the International Energy Agency.
Guggisberg said this made grid investment increasingly important, raising demand for medium-voltage equipment.
Reporting by John Revill Editing by Dave Graham
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. ABB (ABBNY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
ABB is one of 181 individual stocks in the Industrial Products sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ABB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ABBNY's full-year earnings has moved 20% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ABBNY has returned about 36.1% since the start of the calendar year. In comparison, Industrial Products companies have returned an average of 10.2%. This shows that ABB is outperforming its peers so far this year.
One other Industrial Products stock that has outperformed the sector so far this year is CECO Environmental (CECO - Free Report) . The stock is up 30.9% year-to-date.
For CECO Environmental, the consensus EPS estimate for the current year has increased 14.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, ABB belongs to the Manufacturing - Electronics industry, a group that includes 14 individual companies and currently sits at #103 in the Zacks Industry Rank. This group has gained an average of 11.7% so far this year, so ABBNY is performing better in this area.
CECO Environmental, however, belongs to the Pollution Control industry. Currently, this 5-stock industry is ranked #172. The industry has moved -3.4% so far this year.
ABB and CECO Environmental could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
SoftBank Group Corp.’s (OTC:SFTBY) CEO, Masayoshi Son, has identified two frontiers as the next trillion-dollar business opportunity.
In a conversation with CNBC’s Arjun Kharpal on Monday, Son expressed his enthusiasm for both humanoid and industrial robotics, "with physical AI as a core."
In the same conversation, Son also stated that the ongoing AI revolution is “50x bigger” than the dot-com boom of the 2000s.
According to the SoftBank CEO, this is “just the beginning" of a technological "revolution" that could last 50-100 years. He denied the presence of any AI bubble and suggested that market corrections could present attractive buying opportunities.
Robotics Powers SoftBank’s Next BetIn October, SoftBank purchased the robotics division of Swiss engineering firm ABB (OTC:ABBNY) in a $5.4 billion deal, to explore its "next frontier", which is "Physical AI."
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ABB (ABBNY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
ABB is a member of our Industrial Products group, which includes 181 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ABB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ABBNY's full-year earnings has moved 13.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ABBNY has gained about 45.2% so far this year. In comparison, Industrial Products companies have returned an average of 17.6%. This means that ABB is performing better than its sector in terms of year-to-date returns.
Another stock in the Industrial Products sector, CECO Environmental (CECO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 35.5%.
The consensus estimate for CECO Environmental's current year EPS has increased 17% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ABB belongs to the Manufacturing - Electronics industry, a group that includes 14 individual stocks and currently sits at #86 in the Zacks Industry Rank. This group has gained an average of 23.7% so far this year, so ABBNY is performing better in this area.
CECO Environmental, however, belongs to the Pollution Control industry. Currently, this 5-stock industry is ranked #209. The industry has moved -0.4% so far this year.
Investors interested in the Industrial Products sector may want to keep a close eye on ABB and CECO Environmental as they attempt to continue their solid performance.
ABB (ABBNY) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Company Achieved Water Stewardship and Product Design for Sustainability Strategic Targets While Making Continued Progress Toward Greenhouse Gas Emissions Reduction Target
LONDON--(BUSINESS WIRE)--Pentair plc (NYSE: PNR), a leader in helping the world sustainably move, improve and enjoy water, life’s most essential resource, today released its 2025 Sustainability Report, reporting on the Company’s efforts to build a more resilient future for its business and the planet.
In the Report, Pentair highlights its efforts toward Making Better Essential, including the achievement of its Water Stewardship and Product Design for Sustainability targets, with continued progress towards its Greenhouse Gas Emissions Reduction target.
“At Pentair, we believe that water is life’s most essential resource,” said John Stauch, Pentair President and CEO. “This report shares how, together with our customers, we are building a better future that is not only more resilient for our business but also for people and the planet.”
Pentair shared the following updates on its Sustainability Strategic Targets, which are guided by its purpose to create a better world for people and the planet through smart, sustainable water solutions:
Water Stewardship Target:
In 2025, Pentair met its annual Sustainability Strategic Target focused on water stewardship by restoring 100% of water withdrawal by manufacturing sites in high-water-stress areas, representing approximately 31 million gallons of water restored to high-water-stress areas.1
Additionally, Pentair advanced its own operational efforts by reducing water withdrawal by 34.4% from the 2019 baseline in 2025 and 4.9% compared to 2024.
Greenhouse Gas Emissions Reduction Target:
In 2025, Pentair achieved continued progress toward its Sustainability Strategic Target focused on GHG emissions reduction by reducing its Scope 1 and Scope 2 GHG emissions by 54.0% from its 2019 baseline.
Product Design for Sustainability:
In 2025, Pentair achieved the Sustainability Strategic Target, focused on sustainable product design, by assessing 100% of new products2 with its product sustainability scorecard.3
“I am so proud of our progress and achievements in 2025 which has been supported and driven by Pentair employees around the world who are living our purpose of creating a better world for people and the planet through smart, sustainable water solutions,” said Oriana Raabe, PhD., Vice President of Sustainability. “Our employees are at the heart of sustainability, taking actions every day that deliver for our customers, achieve progress toward our sustainability targets, and innovate for a more sustainable future.”
The 2025 Sustainability Report also highlights examples of how Pentair’s customer-focused, sustainable innovation efforts are delivering positive impacts for its customers, and for people and the planet, including:
Move Water:
23 million more people protected from flooding by Pentair pumps sold in 20254 100,000 metric tons of carbon dioxide that can be recovered annually by customers using Pentair systems5 Improve Water:
40 billion single-use plastic water bottles avoided by customers using Pentair residential water filtration systems since 2021, equating to approximately 500,000 metric tons of plastic diverted from landfills6 18,000 gallons of water may be saved over the lifespan of the Manitowoc Indigo NXT ice machine with the new operating system, equivalent to nearly 230 bathtubs of water7 Enjoy Water:
80 percent of Pentair pool pumps and lights are energy efficient8 450,000 metric tons of CO2e emissions may be avoided by US consumers through our energy-efficient pool pumps, heaters, and lights sold in 20259, equivalent to approximately 61,000 homes’ energy use for one year10 To learn more about Pentair’s strategic targets and its 2025 Sustainability Report, visit pentair.com/impact.
1 “High-water-stress areas” are defined as areas that have an Overall Water Risk score of 3 or higher in the World Resource Institute’s Aqueduct Water Risk Atlas tool. Water planned to be restored into the same or other high-water-stress areas as Pentair withdrawal.
2 Physical products only.
3 The product sustainability scorecard analyzed five impacts from a product's lifecycle - water use, energy use, GHG emissions, resource use efficiency, and material health - and incorporated an assessment of these impacts as part of new product design.
4 Population estimates are derived from the latest available census data for the cities where pumps were sold. Actual population figures may differ based on the current 2025 population and the specific installation site of each pump following purchase.
5 Based on 2025 sales of sustainable gas solutions.
6 Based on cumulative sales of Pentair’s brands meeting this definition from 2021-2025. Calculation based on a typical single-use plastic water bottle with 16.9 ounces of volume and containing 13.3 grams of polyethylene terephthalate.
7 The updated Indigo NXT IYP0620A-261 may save up to 18,000 gallons of water over its lifespan compared to previous models. These potential water savings could be equivalent to nearly 230 bathtubs (assuming each bathtub holds 80 gallons). Savings are based on water usage data from publicly available manufacturer product specification sheets. Actual water consumption may vary.
8 Based on 2025 products sold. Metric covers North American pool pumps and lights. Energy-efficient products are defined as pool pumps previously rated by ENERGY STAR® and LED lights.
9 Based on total 2025 sales of ETi High-Efficiency Pool & Spa Heaters, pool pumps previously rated by ENERGY STAR, and LED lights made by Pentair. Savings calculated based on eight months of use.
10 Emissions equivalency, calculated in March 2026, is estimated using the US Environmental Protection Agency's (EPA) GHG Equivalencies Calculator as available at that time.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
Pentair had revenue in 2025 of approximately $4.2 billion, and trades under the ticker symbol PNR. With approximately 9,000 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” or “future” or words, phrases, or terms of similar substance or the negative thereof are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and Transformation Program; the impact of raw material, logistics and labor costs and other inflation; volatility in currency exchange rates and interest rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; risks associated with operating foreign businesses; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and sustainability goals and targets. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.
Bfsg LLC purchased a new stake in Pentair plc (NYSE:PNR – Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 69,530 shares of the industrial products company’s stock, valued at approximately $7,241,000.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PNR. Nordea Investment Management AB raised its stake in Pentair by 173.6% during the 3rd quarter. Nordea Investment Management AB now owns 2,837,753 shares of the industrial products company’s stock valued at $311,046,000 after purchasing an additional 1,800,669 shares during the period. Ameriprise Financial Inc. boosted its position in shares of Pentair by 106.7% in the third quarter. Ameriprise Financial Inc. now owns 3,236,826 shares of the industrial products company’s stock worth $358,521,000 after buying an additional 1,670,944 shares during the period. Valeo Financial Advisors LLC purchased a new position in shares of Pentair during the second quarter valued at $102,945,000. Assenagon Asset Management S.A. raised its position in Pentair by 1,690.9% during the fourth quarter. Assenagon Asset Management S.A. now owns 729,663 shares of the industrial products company’s stock valued at $75,987,000 after buying an additional 688,921 shares during the period. Finally, 140 Summer Partners LP acquired a new position in Pentair during the third quarter valued at $60,752,000. Institutional investors and hedge funds own 92.37% of the company’s stock.
Insider Activity at Pentair In other Pentair news, Director Michael T. Speetzen sold 7,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $99.99, for a total value of $699,930.00. Following the completion of the sale, the director directly owned 8,290 shares of the company’s stock, valued at $828,917.10. The trade was a 45.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Philip M. Rolchigo sold 6,493 shares of the firm’s stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $103.22, for a total transaction of $670,207.46. Following the transaction, the executive vice president owned 29,096 shares in the company, valued at $3,003,289.12. This represents a 18.24% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.26% of the company’s stock.
Analyst Upgrades and Downgrades A number of brokerages have commented on PNR. BNP Paribas Exane lowered Pentair from a “hold” rating to a “strong sell” rating and set a $90.00 price objective for the company. in a research report on Wednesday, January 7th. Robert W. Baird set a $117.00 target price on Pentair in a report on Wednesday, February 4th. Weiss Ratings lowered shares of Pentair from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday. Wall Street Zen raised shares of Pentair from a “hold” rating to a “buy” rating in a research report on Sunday, March 8th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $125.00 price objective (down from $135.00) on shares of Pentair in a research note on Tuesday, March 31st. Ten analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $113.33.
Get Our Latest Report on Pentair
Pentair Stock Performance Shares of NYSE PNR opened at $90.50 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.61 and a quick ratio of 0.95. Pentair plc has a one year low of $77.71 and a one year high of $113.95. The business’s 50-day moving average price is $93.89 and its two-hundred day moving average price is $102.21. The company has a market capitalization of $14.62 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.60 and a beta of 1.25.
Pentair (NYSE:PNR – Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $1.18 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.01. The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.01 billion. Pentair had a return on equity of 21.79% and a net margin of 15.66%.The business’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period last year, the business earned $1.08 EPS. Pentair has set its FY 2026 guidance at 5.250-5.400 EPS and its Q1 2026 guidance at 1.150-1.180 EPS. Analysts anticipate that Pentair plc will post 4.77 earnings per share for the current fiscal year.
Pentair Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Friday, April 17th will be paid a $0.27 dividend. The ex-dividend date is Friday, April 17th. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. Pentair’s payout ratio is 27.27%.
Pentair Company Profile (Free Report)
Pentair plc (NYSE: PNR) is a global provider of water treatment and fluid management solutions. The company designs, manufactures and sells a broad range of products that move, treat, monitor and control the flow of water and other fluids across residential, commercial, industrial and municipal markets. Pentair’s offerings are focused on improving water quality, conserving resources and enabling efficient fluid handling in applications from household water systems and pools to large-scale industrial and municipal installations.
Product lines include pumps and pumping systems, water filtration and purification equipment, valves and controls, heat exchangers, pool and spa systems, and a range of aftermarket parts and services.
Recommended Stories Five stocks we like better than Pentair Want to see what other hedge funds are holding PNR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pentair plc (NYSE:PNR – Free Report).
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Pentair plc is an American global water treatment company. Founded in 1966, it is now a $14 billion (by market cap) water treatment solutions leader employing 9,000 people. Pentair is an absolute legend when it comes to reliable dividend growth. The company has increased its dividend for 50 consecutive years – a newly crowned Dividend King. Pentair has a very good financial position. The long-term debt/equity ratio is 0.4, while the interest coverage ratio is 12.
LONDON--(BUSINESS WIRE)--Pentair plc (NYSE:PNR), a leader in helping the world sustainably move, improve and enjoy water, life’s most essential resource, will report its first quarter 2026 results before the opening of the New York Stock Exchange on Tuesday, April 28, 2026. The company will also hold a conference call with investors at 9:00 a.m. Eastern Time that day.
Related presentation materials will be posted to the “Investor Relations” section of the company's website (www.pentair.com) prior to the conference call.
Conference Call Details
The call can be accessed via webcast through the “Investor Relations” section of Pentair’s website or by dialing (844) 481-2705 or (412) 317-0661 along with participant passcode PENTAIR. A replay of the conference call will be available through May 26, 2026 by dialing (855) 669-9658 or (412) 317-0088, along with the participant passcode 8017922.
About Pentair plc
At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
Pentair had revenue in 2024 of approximately $4.1 billion, and trades under the ticker symbol PNR. With approximately 9,750 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.
Pentair plc (PNR - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.17 per share in its upcoming report, which represents a year-over-year change of +5.4%.
Revenues are expected to be $1.03 billion, up 1.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Pentair?For Pentair, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.07%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Pentair will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Pentair would post earnings of $1.17 per share when it actually produced earnings of $1.18, delivering a surprise of +0.85%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pentair doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Cwm LLC cut its holdings in shares of Pentair plc (NYSE:PNR – Free Report) by 28.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 35,313 shares of the industrial products company’s stock after selling 13,751 shares during the period. Cwm LLC’s holdings in Pentair were worth $3,677,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also modified their holdings of the company. Avanza Fonder AB increased its holdings in Pentair by 142.1% during the 4th quarter. Avanza Fonder AB now owns 38,940 shares of the industrial products company’s stock worth $4,055,000 after purchasing an additional 22,858 shares during the last quarter. Nordea Investment Management AB boosted its stake in shares of Pentair by 173.6% during the 3rd quarter. Nordea Investment Management AB now owns 2,837,753 shares of the industrial products company’s stock valued at $311,046,000 after buying an additional 1,800,669 shares during the last quarter. IMC Chicago LLC purchased a new position in shares of Pentair during the 3rd quarter valued at approximately $1,635,000. SG Americas Securities LLC grew its position in shares of Pentair by 624.2% during the fourth quarter. SG Americas Securities LLC now owns 362,648 shares of the industrial products company’s stock worth $37,766,000 after buying an additional 312,574 shares in the last quarter. Finally, Envestnet Asset Management Inc. grew its position in shares of Pentair by 93.6% during the third quarter. Envestnet Asset Management Inc. now owns 397,471 shares of the industrial products company’s stock worth $44,024,000 after buying an additional 192,125 shares in the last quarter. 92.37% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Pentair In related news, Director Michael T. Speetzen sold 7,000 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $99.99, for a total transaction of $699,930.00. Following the completion of the sale, the director owned 8,290 shares of the company’s stock, valued at $828,917.10. This represents a 45.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Philip M. Rolchigo sold 6,493 shares of the firm’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $103.22, for a total transaction of $670,207.46. Following the completion of the transaction, the executive vice president directly owned 29,096 shares in the company, valued at $3,003,289.12. This represents a 18.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.26% of the stock is owned by corporate insiders.
Analyst Ratings Changes PNR has been the topic of several recent analyst reports. Weiss Ratings cut shares of Pentair from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, April 8th. Oppenheimer reissued an “outperform” rating and set a $122.00 price objective (down from $128.00) on shares of Pentair in a report on Wednesday, February 4th. Royal Bank Of Canada set a $117.00 target price on shares of Pentair in a research report on Wednesday, February 4th. Robert W. Baird set a $117.00 target price on shares of Pentair in a research note on Wednesday, February 4th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $125.00 price target (down from $135.00) on shares of Pentair in a research note on Tuesday, March 31st. Ten investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $112.21.
View Our Latest Report on PNR
Pentair Stock Performance PNR stock opened at $89.55 on Thursday. The stock’s 50 day simple moving average is $92.25 and its 200 day simple moving average is $100.87. Pentair plc has a 12-month low of $83.60 and a 12-month high of $113.95. The firm has a market cap of $14.47 billion, a P/E ratio of 22.61, a P/E/G ratio of 1.62 and a beta of 1.25. The company has a current ratio of 1.61, a quick ratio of 0.95 and a debt-to-equity ratio of 0.42.
Pentair (NYSE:PNR – Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The industrial products company reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.01. Pentair had a net margin of 15.66% and a return on equity of 21.79%. The firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter in the previous year, the company posted $1.08 earnings per share. The firm’s revenue was up 4.9% on a year-over-year basis. Pentair has set its FY 2026 guidance at 5.250-5.400 EPS and its Q1 2026 guidance at 1.150-1.180 EPS. As a group, equities research analysts predict that Pentair plc will post 5.34 EPS for the current year.
Pentair Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Friday, April 17th will be issued a $0.27 dividend. The ex-dividend date of this dividend is Friday, April 17th. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. Pentair’s payout ratio is 27.27%.
Pentair Profile (Free Report)
Pentair plc (NYSE: PNR) is a global provider of water treatment and fluid management solutions. The company designs, manufactures and sells a broad range of products that move, treat, monitor and control the flow of water and other fluids across residential, commercial, industrial and municipal markets. Pentair’s offerings are focused on improving water quality, conserving resources and enabling efficient fluid handling in applications from household water systems and pools to large-scale industrial and municipal installations.
Product lines include pumps and pumping systems, water filtration and purification equipment, valves and controls, heat exchangers, pool and spa systems, and a range of aftermarket parts and services.
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Key Takeaways Pentair is set to report Q1 2026 results on April 28, with sales seen rising about 2% year over year.Pool and Flow segments are expected to offset ongoing declines in Water Solutions revenues.Gains from pricing, cost controls and Transformation initiatives are likely to aid margins. Pentair plc (PNR - Free Report) is set to release its first-quarter 2026 results on April 28, before the opening bell.
The Zacks Consensus Estimate for PNR’s first-quarter sales is pegged at $1.03 billion, indicating 2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for PNR’s earnings has remained stable at $1.17 over the past 60 days, suggesting year-over-year growth of 8.3%.
Image Source: Zacks Investment Research
Pentair’s Strong Earnings Surprise HistoryPNR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 5.1%. This is depicted in the following chart.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for PNR StockOur model does not conclusively predict an earnings beat for Pentair this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here, as you can see below.
Earnings ESP: Pentair has an Earnings ESP of -0.07%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: PNR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped Pentair’s Q1 PerformanceFor the first quarter, Pentair expects sales to be up approximately 1% to 2%, consistent with seasonal trends, with the first quarter being the weakest in the year. Over the past few quarters, Pentair’s revenues have been driven by the Pool and Flow segments, which have helped offset the decline at the Water Solutions segment. This is expected to have continued in the first quarter of 2026 as well.
After witnessing lower volumes for five consecutive quarters, the Pool segment saw a rebound in volumes in the second quarter of 2024 with 17.1% growth. However, momentum has since cooled with volume growth reported in single digits, primarily led by pricing. In the fourth quarter of 2025, the segment reported a 1% rise in volumes, which was the lowest for the year. The segment’s growth in revenues has mainly been driven by pricing. We anticipate volume growth and pricing impact to have been flat in the first quarter of 2026. Our model projects the Pool segment’s sales for the first quarter of 2026 to $384 million, in line with the year-ago results.
We expect the Flow segment’s sales to be $393.5 million, indicating an increase of 7% from the prior-year quarter’s actual. Our model predicts a 0.2% year-over-year jump in volumes. Pricing is expected to have a positive impact of 4.3%, while acquisitions, reflecting the contribution of Hydra-stop, are expected to have added 1.5%.
The Water Solutions segment has been witnessing a decline in sales in the past seven quarters, reflecting the impact of portfolio exits. Our model predicts the Water Solutions segment’s net sales to drop 3.3% year over year to $249.7 million. Volumes and pricing are expected to have been flat in the quarter.
Despite ongoing challenges such as tight raw material supply, elevated logistics costs and declines in the Water Solutions segment, Pentair has continued to expand its margins. This has been possible through pricing actions, cost efficiencies and benefits from its Transformation initiatives. This trend is expected to have persisted in the first quarter of 2026.
We project the company’s total operating income to be $253.5 million, implying a 4.5% increase year over year. Adjusted operating margin is projected at 24.7% for the first quarter of 2026 compared with 24% in the first quarter of 2025.
Our model projects the Pool segment’s adjusted operating margin to be 33%, slightly higher than 32.8% in the first quarter of 2025. The Water Solutions segment’s projected adjusted operating margin is 25%, slightly higher than 23.5% in the first quarter of 2025. The Flow segment’s adjusted operating margin is pegged at 23.8%, higher than 22.7% in the year-ago quarter.
PNR Stock Price PerformancePentair shares have gained 2.1% over the past year against the industry’s 8.6% decline.
Image Source: Zacks Investment Research
Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Powell Industries (POWL - Free Report) , set to release first-quarter 2026 results on May 4, has an Earnings ESP of +4.77% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Powell Industries’ first-quarter 2026 earnings is pegged at $1.29 per share, suggesting a year-over-year rise of 1.57%. Powell Industries has a trailing four-quarter average surprise of 12.94%.
Kennametal (KMT - Free Report) , slated to release first-quarter 2026 results on May 6, has an Earnings ESP of +5.88% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Kennametal’s first-quarter 2026 earnings is pegged at 68 cents per share, calling for a year-over-year jump of 44.7%. Kennametal has a trailing four-quarter average surprise of 35.4%.
Caterpillar (CAT - Free Report) , slated to release first-quarter 2025 results on April 30, has an Earnings ESP of +1.14% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Caterpillar’s first-quarter 2026 earnings is pegged at $4.54 per share, implying a year-over-year rise of 6.8%. Caterpillar has a trailing four-quarter average surprise of 3.9%.
LONDON--(BUSINESS WIRE)--Pentair plc (NYSE: PNR), a leader in helping the world sustainably move, improve and enjoy water, life’s most essential resource, today announced first quarter 2026 sales of $1,037 million. Sales were up 3 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in the first quarter. First quarter 2026 earnings per diluted share from continuing operations (“EPS”) were $0.98 compared to $0.93 in the first quarter of 2025, a 5 percent increase. On an adjusted basis, the Company reported first quarter 2026 EPS of $1.22 compared to $1.11 in the first quarter of 2025, reflecting a 10 percent increase. Adjusted operating income, reportable segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.
John L. Stauch, Pentair’s President and Chief Executive Officer commented, “Continued execution across our Move, Improve and Enjoy Water portfolio led by our Pentair Business System initiatives drove another quarter of sales and earnings growth, and delivered strong productivity and margin expansion. At our recent Investor Day in March, we provided our target long-term growth algorithm detailing our organic growth strategy and continued margin expansion opportunity over the next three years. We believe we have structurally changed our business model into a resilient and balanced water portfolio to drive durable earnings growth long term and mitigate the impacts of economic cyclicality. Our strategy has guided us to deliver breakthrough innovation, invest in organic growth, drive strong financial performance and return capital to shareholders. With a solid balance sheet, strong cash flow, a balanced capital deployment strategy and a resilient water portfolio, we remain focused on delivering long-term shareholder value.”
First quarter 2026 operating income was $210 million, up 3 percent compared to operating income for the first quarter of 2025, and return on sales (“ROS”) was 20.3 percent, an increase of 20 basis points when compared to the first quarter of 2025. On an adjusted basis, the Company had adjusted operating income of $259 million for the first quarter of 2026, up 7 percent compared to adjusted operating income for the first quarter of 2025, and ROS was 25.0 percent, an increase of 100 basis points when compared to the first quarter of 2025.
Flow sales were up 11 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 2 percent in the first quarter. Reportable segment income of $61 million was up 22 percent compared to the first quarter of 2025, and ROS was 23.7 percent, an increase of 210 basis points when compared to the first quarter of 2025.
Water Solutions sales were down 1 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in the first quarter. Reportable segment income of $100 million was up 6 percent compared to the first quarter of 2025, and ROS was 25.5 percent, an increase of 160 basis points when compared to the first quarter of 2025.
Pool sales were up 1 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in the first quarter. Reportable segment income of $128 million was up 2 percent compared to the first quarter of 2025, and ROS was 33.1 percent, an increase of 30 basis points when compared to the first quarter of 2025.
Net cash used for operating activities was $67 million for the quarter compared to $39 million in the first quarter of 2025. Free cash flow used for the quarter was $86 million compared to $56 million in the first quarter of 2025.
SHAREHOLDER RETURNS
Pentair paid a regular cash dividend of $0.27 per share in the first quarter of 2026. In addition, Pentair previously announced on February 23, 2026 that it will pay a regular quarterly cash dividend of $0.27 per share on May 1, 2026 to shareholders of record at the close of business on April 17, 2026. This year marks the 50th consecutive year that Pentair has increased its dividend.
During the first quarter, the Company repurchased 2.0 million shares for $200 million. As of March 31, 2026, we had $800.0 million available for share repurchases under our share repurchase authorization.
OUTLOOK
Mr. Stauch concluded, “Our full year outlook reflects a strong first quarter and cautious optimism as we head into our most important quarter seasonally. Our sales growth forecast assumes limited to no U.S. residential recovery and continued expansion across our commercial, industrial and municipal verticals. We feel confident that we expect to control what we can and continue to mitigate risk. We also introduced second quarter guidance reflecting sales growth, margin expansion and EPS growth. As a leader in helping the world move, improve and enjoy water, life’s most essential resource, we are well positioned to capture opportunities from favorable secular trends in water and we continue to invest to drive long-term sales and earnings growth.”
The Company updated its estimated 2026 GAAP EPS from continuing operations to approximately $4.83 to $4.93, up 23 percent to 25 percent versus the prior year, and updated estimated EPS on an adjusted basis to approximately $5.30 to $5.40, up 8 percent to 10 percent versus the prior year. The Company updated its estimated full year 2026 sales to be up approximately 2 to 4 percent on a reported basis.
In addition, the Company introduces estimated second quarter 2026 GAAP EPS from continuing operations guidance of approximately $1.39 to $1.42, up approximately 54 percent to 58 percent compared to the prior year period, and adjusted EPS of approximately $1.47 to $1.50, up approximately 6 percent to 8 percent compared to the prior year period. The Company expects second quarter sales to be up approximately 1 percent on a reported basis compared to the second quarter of 2025.
EARNINGS CONFERENCE CALL
Pentair President and Chief Executive Officer John L. Stauch and Chief Financial Officer Nicholas J. Brazis will discuss the Company’s first quarter 2026 results on a conference call with investors at 9:00 a.m. Eastern today. A live audio webcast of the call, along with the related presentation, can be accessed in the Investor Relations section of the Company’s website, www.pentair.com, shortly before the call begins.
Reconciliations of non-GAAP financial measures are set forth in the attachments to this release and in the presentations, each of which can be found on Pentair’s website. The webcast and presentations will be archived at the Company’s website following the conclusion of the event.
SEGMENT REORGANIZATION
Effective January 1, 2026, we reorganized the composition of our Flow and Water Solutions reportable segments to reflect how we are managing our business. As a result of this reorganization, our legacy residential and irrigation flow business moved from our Flow segment into our Water Solutions segment. The Pool segment remains unchanged. The applicable prior period amounts related to this change have been retrospectively reclassified to conform to the new composition. These changes have no impact on the Company’s historical consolidated financial performance or results of operations.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” or “future” or words, phrases, or terms of similar substance or the negative thereof are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and Transformation Program; the impact of raw material, logistics and labor costs and other inflation; volatility in currency exchange rates and interest rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; risks associated with operating foreign businesses; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and sustainability goals and targets. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
Pentair had revenue in 2025 of approximately $4.2 billion, and trades under the ticker symbol PNR. With approximately 9,000 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.
Pentair plc and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
Three months ended
In millions, except per-share data
March 31,
2026
March 31,
2025
Net sales
$
1,036.7
$
1,010.4
Cost of goods sold
603.3
607.1
Gross profit
433.4
403.3
% of net sales
41.8
%
39.9
%
Selling, general and administrative
198.9
176.6
% of net sales
19.2
%
17.5
%
Research and development
24.5
23.6
% of net sales
2.4
%
2.3
%
Operating income
210.0
203.1
% of net sales
20.3
%
20.1
%
Other expense
Other expense
0.5
0.5
Net interest expense
20.1
19.7
% of net sales
1.9
%
1.9
%
Income from continuing operations before income taxes
189.4
182.9
Provision for income taxes
28.6
28.0
Effective tax rate
15.1
%
15.3
%
Net income from continuing operations
160.8
154.9
Income from discontinued operations, net of tax
11.6
—
Net income
$
172.4
$
154.9
Earnings per ordinary share
Basic
Continuing operations
$
0.99
$
0.94
Discontinued operations
0.07
—
Basic earnings per ordinary share
$
1.06
$
0.94
Diluted
Continuing operations
$
0.98
$
0.93
Discontinued operations
0.07
—
Diluted earnings per ordinary share
$
1.05
$
0.93
Weighted average ordinary shares outstanding
Basic
162.5
164.9
Diluted
163.7
166.3
Cash dividends paid per ordinary share
$
0.27
$
0.25
Pentair plc and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
March 31,
2026
December 31,
2025
In millions
Assets
Current assets
Cash and cash equivalents
$
67.7
$
101.6
Accounts receivable, net
913.7
673.2
Inventories
642.0
632.6
Other current assets
139.6
134.4
Total current assets
1,763.0
1,541.8
Property, plant and equipment, net
377.1
376.8
Other assets
Goodwill
3,524.7
3,538.1
Intangibles, net
1,056.1
1,073.3
Other non-current assets
351.1
338.8
Total other assets
4,931.9
4,950.2
Total assets
$
7,072.0
$
6,868.8
Liabilities and Equity
Current liabilities
Accounts payable
$
332.5
$
301.5
Employee compensation and benefits
94.5
120.1
Other current liabilities
512.5
537.7
Total current liabilities
939.5
959.3
Other liabilities
Long-term debt
1,944.3
1,638.6
Pension and other post-retirement compensation and benefits
58.2
58.8
Deferred tax liabilities
45.7
47.5
Other non-current liabilities
274.2
295.4
Total liabilities
3,261.9
2,999.6
Equity
3,810.1
3,869.2
Total liabilities and equity
$
7,072.0
$
6,868.8
Pentair plc and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three months ended
In millions
March 31,
2026
March 31,
2025
Operating activities
Net income
$
172.4
$
154.9
Income from discontinued operations, net of tax
(11.6
)
—
Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities of continuing operations
Equity income of unconsolidated subsidiaries
(0.5
)
(0.4
)
Depreciation
14.6
14.8
Amortization
15.7
14.2
Deferred income taxes
1.8
11.5
Share-based compensation
15.7
12.6
Asset impairment and write-offs
—
5.2
Changes in assets and liabilities, net of effects of business acquisitions
Accounts receivable
(243.0
)
(261.6
)
Inventories
(11.5
)
(3.5
)
Other current assets
(6.6
)
(12.5
)
Accounts payable
33.5
23.8
Employee compensation and benefits
(24.5
)
(24.3
)
Other current liabilities
(23.7
)
22.6
Other non-current assets and liabilities
0.3
3.8
Net cash used for operating activities
(67.4
)
(38.9
)
Investing activities
Capital expenditures
(18.5
)
(16.8
)
Proceeds from sale of property and equipment
0.2
—
Net cash used for investing activities
(18.3
)
(16.8
)
Financing activities
Net repayments of short-term borrowings
—
(9.3
)
Net borrowings of revolving long-term debt
304.9
196.2
Shares issued to employees, net of shares withheld
(10.2
)
(8.6
)
Repurchases of ordinary shares
(200.0
)
(50.0
)
Dividends paid
(44.1
)
(41.2
)
Net cash provided by financing activities
50.6
87.1
Effect of exchange rate changes on cash and cash equivalents
1.2
(9.5
)
Change in cash and cash equivalents
(33.9
)
21.9
Cash and cash equivalents, beginning of period
101.6
118.7
Cash and cash equivalents, end of period
$
67.7
$
140.6
Pentair plc and Subsidiaries
Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash Flow (Unaudited)
Three months
ended
Three months
ended
In millions
March 31,
2026
March 31,
2025
Net cash used for operating activities
$
(67.4
)
$
(38.9
)
Capital expenditures
(18.5
)
(16.8
)
Proceeds from sale of property and equipment
0.2
—
Free cash flow
$
(85.7
)
$
(55.7
)
Pentair plc and Subsidiaries
Supplemental Financial Information by Reportable Segment (Unaudited)
2026
2025
In millions
First
Quarter
First
Quarter
Net sales
Flow
$
258.1
$
232.6
Water Solutions
391.0
393.5
Pool
387.1
383.9
Reportable segment net sales
1,036.2
1,010.0
Corporate and other
0.5
0.4
Net sales
$
1,036.7
$
1,010.4
Reportable segment income (loss)
Flow
$
61.2
$
50.2
Water Solutions
99.9
94.1
Pool
128.1
126.0
Reportable segment income
289.2
270.3
Corporate and other
(30.1
)
(27.8
)
Adjusted operating income
$
259.1
$
242.5
Return on sales
Flow
23.7
%
21.6
%
Water Solutions
25.5
%
23.9
%
Pool
33.1
%
32.8
%
Adjusted return on sales
25.0
%
24.0
%
Pentair plc and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2026
Excluding the Effect of Adjustments (Unaudited)
Actual
Forecast
In millions, except per-share data
First
Quarter
Second
Quarter
Full
Year
Net sales
$
1,036.7
approx
Up 1%
approx
Up 2% - 4%
Operating income
210.0
approx
Up 36% - 37%
approx
Up 19% - 21%
Return on sales
20.3
%
Adjustments:
Restructuring and other
21.4
approx
$
—
approx
$
21
Transformation costs
11.5
approx
—
approx
12
Intangible amortization
15.7
approx
15
approx
62
Equity income of unconsolidated subsidiaries
0.5
approx
1
approx
3
Adjusted operating income
259.1
approx
Up 5% - 6%
approx
Up 6% - 8%
Adjusted return on sales
25.0
%
Net income from continuing operations—as reported
160.8
approx
$227 - $232
approx
$787 - $803
Adjustments to operating income
48.6
approx
15
approx
95
Income tax adjustments
(10.4
)
approx
(2
)
approx
(18
)
Net income from continuing operations—as adjusted
$
199.0
approx
$240 - $245
approx
$864 - $880
Continuing earnings per ordinary share—diluted
Diluted earnings per ordinary share—as reported
$
0.98
approx
$1.39 - $1.42
approx
$4.83 - $4.93
Adjustments
0.24
approx
0.08
approx
0.47
Diluted earnings per ordinary share—as adjusted
$
1.22
approx
$1.47 - $1.50
approx
$5.30 - $5.40
Pentair plc and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2025
Excluding the Effect of Adjustments (Unaudited)
In millions, except per-share data
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Net sales
$
1,010.4
$
1,123.1
$
1,022.0
$
1,020.5
$
4,176.0
Operating income
203.1
217.7
231.7
205.0
857.5
Return on sales
20.1
%
19.4
%
22.7
%
20.1
%
20.5
%
Adjustments:
Restructuring and other
10.5
10.4
0.2
10.2
31.3
Transformation costs
9.1
12.5
10.8
8.4
40.8
Intangible amortization
14.2
14.3
13.9
15.7
58.1
Legal accrual adjustments and settlements
—
—
—
11.6
11.6
Asset impairment and write-offs
5.2
41.8
1.5
0.6
49.1
Deal-related costs and expenses
—
—
4.1
—
4.1
Equity income of unconsolidated subsidiaries
0.4
—
0.4
0.2
1.0
Adjusted operating income
242.5
296.7
262.6
251.7
1,053.5
Adjusted return on sales
24.0
%
26.4
%
25.7
%
24.7
%
25.2
%
Net income from continuing operations—as reported
154.9
148.5
184.3
161.8
649.5
Loss on sale of business
—
26.3
—
—
26.3
Pension and other post retirement mark-to-market loss
—
—
—
2.4
2.4
Adjustments to operating income
39.0
79.0
30.5
46.5
195.0
Income tax adjustments
(9.7
)
(23.3
)
(9.5
)
(16.0
)
(58.5
)
Net income from continuing operations—as adjusted
$
184.2
$
230.5
$
205.3
$
194.7
$
814.7
Continuing earnings per ordinary share—diluted
Diluted earnings per ordinary share—as reported
$
0.93
$
0.90
$
1.12
$
0.98
$
3.93
Adjustments
0.18
0.49
0.12
0.20
0.99
Diluted earnings per ordinary share—as adjusted
$
1.11
$
1.39
$
1.24
$
1.18
$
4.92
Pentair plc and Subsidiaries
Reconciliation of Net Sales Growth to Core Net Sales Growth by Reportable Segment
LONDON--(BUSINESS WIRE)--Pentair plc (NYSE: PNR), a leader in helping the world sustainably move, improve, and enjoy water life’s most essential resource, today announced that Jerome Pedretti, Executive Vice President and Chief Executive Officer of Pentair Pool, will depart the Company effective July 1, 2026. Pedretti concludes a distinguished career with Pentair spanning more than 20 years.
In connection with Pedretti’s departure, Pentair is eliminating the Chief Executive Officer of Pentair Pool role. De’Mon Wiggins, current EVP and President, Pentair Flow and Pentair Water Solutions, will assume responsibility for the Pool segment as EVP and President, Pentair Flow, Water Solutions and Pool, effective April 28, 2026. Pedretti will remain with Pentair through his departure date to support an orderly transition.
“Over more than two decades with Pentair, Jerome has made a significant and lasting impact on our Pool and Flow businesses through his leadership, deep expertise, and unwavering commitment to our customers and our culture,” said John Stauch, Pentair President and Chief Executive Officer. “We are truly grateful for Jerome’s many contributions and for his thoughtful partnership in supporting a smooth transition. With De’Mon’s strong track record of execution and strategic leadership, I am confident in the continued momentum of our Pool business and excited about the opportunities ahead.”
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” or “future” or words, phrases, or terms of similar substance or the negative thereof are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and Transformation Program; the impact of raw material, logistics and labor costs and other inflation; volatility in currency exchange rates and interest rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; risks associated with operating foreign businesses; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and sustainability goals and targets. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
Pentair had revenue in 2025 of approximately $4.2 billion, and trades under the ticker symbol PNR. With approximately 9,000 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.
Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.31%. A quarter ago, it was expected that this company would post earnings of $1.17 per share when it actually produced earnings of $1.18, delivering a surprise of +0.85%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Pentair, which belongs to the Zacks Waste Removal Services industry, posted revenues of $1.04 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.67%. This compares to year-ago revenues of $1.01 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pentair shares have lost about 11.4% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Pentair?While Pentair has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pentair was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $1.15 billion in revenues for the coming quarter and $5.34 on $4.31 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Clean Harbors (CLH - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This environmental services company is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of +5.5%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level.
Clean Harbors' revenues are expected to be $1.47 billion, up 2.3% from the year-ago quarter.
Pentair plc (PNR - Free Report) reported $1.04 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.6%. EPS of $1.22 for the same period compares to $1.11 a year ago.
The reported revenue represents a surprise of +0.67% over the Zacks Consensus Estimate of $1.03 billion. With the consensus EPS estimate being $1.17, the EPS surprise was +4.31%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Pentair performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue Growth - Core - Total Pentair: 1.1% compared to the 1.8% average estimate based on four analysts.Revenue Growth - Core - Water Solutions: 0.9% compared to the 0.4% average estimate based on three analysts.Revenue Growth - Core - Pool: 0.5% versus 2% estimated by three analysts on average.Revenue Growth - Core - Flow: 2.5% compared to the 3.7% average estimate based on three analysts.Net Sales- Pool: $387.1 million versus $389.83 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.Net Sales- Flow: $258.1 million versus $310.82 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -29.9% change.Net Sales- Corporate and other: $0.5 million compared to the $0.39 million average estimate based on five analysts. The reported number represents a change of +25% year over year.Net Sales- Water Solutions: $258.1 million versus the five-analyst average estimate of $328.3 million. The reported number represents a year-over-year change of 0%.Segment income (loss)- Corporate and other: $-30.1 million versus $-31.42 million estimated by five analysts on average.Segment income (loss)- Pool: $128.1 million compared to the $127.77 million average estimate based on five analysts.Segment income (loss)- Water Solutions: $99.9 million versus the five-analyst average estimate of $80.47 million.Segment income (loss)- Flow: $61.2 million versus the five-analyst average estimate of $75.55 million.View all Key Company Metrics for Pentair here>>>
Shares of Pentair have returned +9.9% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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Stock to Watch: Pentair plc (PNR - Free Report) Manchester, U.K.-based Pentair delivers a comprehensive range of smart, sustainable water solutions to homes, business and industry globally. Its portfolio of solutions enables customers to access clean, safe water, reduce water consumption, as well as recovering and reusing it.
PNR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.53; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $5.34 per share. PNR also boasts an average earnings surprise of +3.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PNR should be on investors' short list.
Pentair (PNR +1.70%) stock hasn't given investors much to celebrate in 2026, and things aren't turning around this week. Although the water solutions company reported strong first-quarter 2026 financial results on Tuesday, several analysts subsequently tempered their expectations for Pentair stock, motivating investors to click the sell button.
According to data provided by S&P Global Market Intelligence, shares of Pentair have fallen 12% from the end of trading last Friday through yesterday's close.
Image source: Getty Images.
A flood of bearish analyst sentiment has drowned investors' interest in owning this water stock Reporting Q1 2026 revenue of $1.04 billion and adjusted earnings per share (EPS) of $1.22 on Tuesday, Pentair beat analysts' expectations that it would post sales and adjusted EPS of $1.03 billion and $1.17, respectively.
Today's Change
(
1.70
%) $
1.23
Current Price
$
73.80
Unimpressed with the company's surprisingly good financial results, investors placed greater emphasis on the tide of downwardly revised price targets that followed.
Barclays cut its price target to $92 from $95. TD Cowen slashed its price target to $75 from $90. Bank of America reduced its price target to $80 from $88. Don't be afraid to swim against the current Despite analysts' more pessimistic outlook for Pentair stock, investors would be better served to place greater emphasis on the company's strong financial performance and management's confidence that the business is well-positioned to grow through 2026. Management, for example, forecasts 2026 earnings per share from continuing operations of $4.83 to $4.93, representing year-over-year increases of 23% to 25%.
With Pentair shares trading at 15.4 times operating cash flow, a discount to their five-year average cash flow multiple of 17.5, today's a great time for investors to dip their toes into this water stock.
Bank of America is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
LONDON--(BUSINESS WIRE)--Pentair plc (NYSE: PNR) announced today that it will pay a regular quarterly cash dividend of $0.27 per share on August 7, 2026 to shareholders of record at the close of business on July 24, 2026. This is the 50th consecutive year that Pentair has increased its dividend.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
Pentair had revenue in 2025 of approximately $4.2 billion, and trades under the ticker symbol PNR. With approximately 9,000 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.
The planned first-of-its-kind technology integration aims to provide actionable insights to support faster diagnostics, smarter planning, and a better customer experience
LONDON--(BUSINESS WIRE)--Pentair Pool, a leader in smart, sustainable pool solutions, today announced plans to release a technology integration with Pool Brain, a premier software platform for swimming pool service and repair professionals, to strengthen Pentair Pool’s connected equipment ecosystem and further advance Pentair’s vision for data-driven service and automation for pool professionals. This future integration is designed to equip pool professionals with streamlined, all-in-one insights—enabling faster, more informed service for homeowners.
The long-anticipated integration will bring together Pentair Pool’s connected pool equipment, the largest installed based in the U.S., and automation technology from Pool Brain’s service management platform to deliver critical insights before a technician ever arrives on site. With the technology integration, for the first time, service professionals will be able to gain a consolidated, data-driven view of pool conditions through an all-in-one software solution—helping them arrive informed, prepared, and confident.
“This future technology integration is designed to not only provide pool servicers with deeper insight into our connected equipment but empower them to deliver superior service to pool owners,” said Greg Claffey, Senior Vice President and President, Pentair Pool. “Together with Pool Brain this integration will provide insights that will help reduce truck rolls and increase profitability for servicers while, most importantly, ensuring that pool owners are able to enjoy more pool days with their friends and family.”
The expected release of the Pentair Pool–Pool Brain technology integration is designed to support pool service teams with goals of:
Automated visibility into equipment status and pool performance Smarter and simplified service planning that helps reduce truck rolls and diagnostic time Improved customer experiences through faster resolution, proactive issue prevention, and informed service calls Streamlined and focused technology consolidating platforms for more efficient workflows Digital access to product information and performance data—making Pentair Pool one of the first manufacturers to deliver the insights pros need, directly within the platforms they already use. The collaboration reflects Pentair Pool’s broader vision to deliver connected, intelligent pool solutions that help save time, build efficiencies, and grow servicer profitability in every stage of operating, servicing, and growing a pool business.
“Remote data monitoring is the future of the pool service industry and this ground breaking integration with Pentair Pool marks a major step forward,” said Adam Beech, founder and CEO of Pool Brain. “Pool Brain was built from day one with this future in mind and we’re thrilled to now integrate with the most widely deployed connected pool equipment in the market. Service companies will finally be able to connect the equipment on the pad to the software platform they already use to gain automated data visibility, even when not on property. This data, combined with Pool Brain’s alerts and automations create benefits that simply weren’t possible until now. It’s a huge win for both pool pros and pool owners.”
Building on its legacy of industry‑leading innovation, Pentair Pool is once again redefining how pools are managed and enjoyed. The expected rollout for the Pentair Pool technology integration with Pool Brain is late summer 2026. Pool professionals can stay up to date on the next steps for the Pentair Pool–Pool Brain technology integration by signing up to be the first to know how the game is changing in the pool industry, at Pentair-Pool Brain Integration.
About Pentair Pool
Pentair Pool is a Pentair plc business. At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.
As an industry leader in the pool and spa space, Pentair Pool is driven to help people sustainably enjoy water. Our solutions include industry-leading pumps, automation, lighting, heating, and filtration technologies that help customers enjoy a smarter and more efficient pool. Customer success is central to our vision—bringing family and friends together in the pool and on the deck to build social connections, create lifelong memories, and promote fitness and enjoyment.
For more information, visit pentair.com/pool and follow Pentair Pool on Facebook and Instagram.
About Pool Brain
A modern “all in one” pool software platform built by industry experts to give you more time, more money, and less stress. Key features include fully automated chemical dosing, remote data monitoring, custom alerts, guided workflows, scheduling, route optimization, quotes (estimates), jobs (work orders), automatic billing, self-serve customer portal, products & services management, customer management, multiple bodies of water, equipment tracking, issue reporting, technician controls, built-in customer feedback, mobile app (no signal required), auto-notifications, group emails, reporting and integrations, and more. For more information, visit poolbrain.com.
Investors in Pentair plc (PNR - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $65.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Pentair shares, but what is the fundamental picture for the company? Currently, Pentair is a Zacks Rank #3 (Hold) in the Waste Removal Services industry that ranks in the Bottom 34% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased his earnings estimate for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.49 per shareto $1.48 in that period.
Given the way analysts feel about Pentair right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
On May 20, 2026, Pentair PLC PNR shares rose 3.1% to a current price of $74.19. This price is within a 52-week range that saw a high of $113.95 and a low of $70.73, indicating a significant decline over the past year.
GF Value™ verdict: Current price is $74.19, which is 18.5% below the GF Value™ of $91.04.GF Score™: 82/100, indicating a strong overall performance.Most notable signal: Insiders sold $0.7M in the last 3 months, with no buying activity recorded. Is PNR Overvalued or Undervalued? Pentair PLC's current share price of $74.19 is significantly below the GF Value™ estimate of $91.04, suggesting that the stock may be undervalued by approximately 18.5%. This margin of safety presents a potential opportunity for long-term investors who believe in the company's fundamentals. The GF Valuation label indicates that the stock is modestly undervalued, which could imply that the market has not fully recognized the company's intrinsic value.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation suggests a favorable entry point, it is crucial for investors to consider the broader market conditions and company performance that could affect future price movements.
How Does PNR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.2x 22.1x Forward P/E 13.9x N/A Currently, Pentair's P/E (TTM) of 18.2x is below its 5-year median of 22.1x, indicating that the stock is trading at a discount compared to its historical valuation. The forward P/E of 13.9x further underscores this valuation discrepancy. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that the stock may be undervalued.
What Does PNR's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 6/10 Profitability 8/10 Growth 6/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 82/100 reflects a strong overall performance, particularly in profitability and valuation, where it scored 8/10. However, its financial strength and momentum scores of 6/10 and 5/10, respectively, indicate areas for improvement. The combination of these scores suggests that while Pentair has solid profitability and valuation metrics, challenges in financial strength and momentum may hinder its growth potential in the near term.
What Are Insiders Doing with PNR Stock? Over the past three months, Pentair insiders sold $0.7 million worth of shares, with no buying activity reported during the same period. This selling activity may reflect a lack of confidence among insiders regarding the stock's near-term performance or broader market conditions. While insider selling is not inherently negative, it raises questions about the outlook from those closest to the company.
What This Means for Investors Based on the GF Value™ analysis, Pentair PLC PNR is currently undervalued, presenting a potential opportunity for investors. However, it is essential to consider the recent insider selling and the company's momentum score when assessing the overall investment landscape.
For the complete analysis, visit the Pentair PLC PNR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is PNR's GF Score™?
PNR's GF Score™ is 82/100, indicating a strong overall performance based on various key factors that are likely to drive long-term returns.
Is PNR overvalued or undervalued?
PNR is currently undervalued according to the GF Value™, which estimates its fair value at $91.04, suggesting a significant upside from the current price of $74.19.
What is PNR's P/E ratio?
PNR's P/E (TTM) is 18.2x, which is below its historical 5-year median of 22.1x, indicating that the stock is trading at a discount compared to its past valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Pentair plc (PNR - Free Report) Manchester, U.K.-based Pentair delivers a comprehensive range of smart, sustainable water solutions to homes, business and industry globally. Its portfolio of solutions enables customers to access clean, safe water, reduce water consumption, as well as recovering and reusing it.
PNR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.85; value investors should take notice.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $5.36 per share. PNR also boasts an average earnings surprise of +3.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PNR should be on investors' short list.
May 21, 2026 06:55 ET | Source: Devon Energy Corporation
HOUSTON, May 21, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) announced the successful acquisition of 16,300 net undeveloped acres in the core of the Delaware Basin in Lea and Eddy Counties, New Mexico, for approximately $2.6 billion, or approximately $161,500 per net acre, through the Bureau of Land Management (“BLM”) Oil and Gas Lease Sale. This acquisition bolsters the premier Delaware Basin positions in the industry, extends inventory life, and is accretive to net asset value per share.
KEY HIGHLIGHTS
Acquisition adds approximately 400 net locations normalized to 2-mile laterals, with expected strong well economics and low breakevens supported by:High Net Revenue Interest: Federal leases carry an 87.5% net revenue interest (“NRI”), with 10-year terms across all depths, more favorable than NRIs typical of state and fee leases in the region.Contiguous Acreage Position: Provides the ability to drill longer laterals and lower costs through co-development and multi-well pad development.Top-Tier Productivity: Highly productive wells across multiple zones expected to compete for near-term capital.Leveraging Competitive Cost Structure: Acreage is directly adjacent to Devon's existing Delaware Basin position, providing the ability to leverage existing facilities and infrastructure. Devon's top-tier drilling and completion cost performance across its Delaware Basin operations provides a significant underwriting advantage in developing these assets. Transaction value of $2.6 billion ($161,500 per net acre or $6.5 million per location) is expected to be funded with cash on hand while maintaining our strong credit profile. Devon remains fully committed to a disciplined cash-return framework, including its recently announced $8 billion share repurchase program. CEO COMMENTARY
“This BLM lease sale presented a rare and compelling opportunity to add high-quality, contiguous federal acreage at scale in the core of the Delaware Basin,” said Clay Gaspar, Devon’s President and Chief Executive Officer. “Each tract was evaluated on rock quality, midstream connectivity, strategic fit and per-share value accretion for our owners. The favorable federal lease terms, including the lower royalty burden, multi-pay potential and the ability to develop with longer laterals on multi-well pads, are immediately accretive to our top-tier inventory. This acquisition is consistent with our successful ground game track record and strengthens our leading Delaware Basin position.”
“The success we achieved in this auction is a testament to the alignment of our Board and the effectiveness of our team, even as we continue to accelerate through the integration of a major merger completed just two weeks ago. Our combined understanding of the basin following the Coterra merger only reinforced our conviction in the quality and depth of this inventory and our confidence in moving decisively to capture these accretive high-quality opportunities.”
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts Daniel Guffey, 281-589-4875Chris Carr, 405-228-2496Hannah Stuckey, 281-589-4983Wade Browne, 405-228-7240 Media Contact Michelle Hindmarch, 405-552-7460 FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Such statements include those concerning strategic plans, our expectations and objectives for future operations, as well as other future events or conditions, and are often identified by use of the words and phrases “expects,” “believes,” “will,” “would,” “could,” “continue,” “may,” “aims,” “likely to be,” “intends,” “forecasts,” “projections,” “estimates,” “plans,” “expectations,” “targets,” “opportunities,” “potential,” “anticipates,” “outlook” and other similar terminology. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Devon expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: the volatility of oil, gas and NGL prices, including from changes in trade relations and policies, such as the imposition of new or increased tariffs or other trade protection measures by the U.S., China or other countries; uncertainties inherent in estimating oil, gas and NGL reserves; the extent to which we are successful in acquiring and discovering additional reserves; the uncertainties, costs and risks involved in our operations; risks related to our hedging activities; our limited control over third parties who operate some of our oil and gas properties and investments; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy; regulatory restrictions, compliance costs and other risks relating to governmental regulation, including with respect to federal lands, environmental matters, water disposal and tax matters; climate change and risks related to regulatory, social and market efforts to address climate change; risks relating to our sustainability initiatives; claims, audits and other proceedings impacting our business, including with respect to historic and legacy operations; governmental interventions in energy markets; counterparty credit risks; risks relating to our indebtedness; cybersecurity risks; risks associated with artificial intelligence and other emerging technologies; the extent to which insurance covers any losses we may experience; risks related to shareholder activism; our ability to successfully complete mergers, acquisitions and divestitures; our ability to pay dividends and make share repurchases; the risk that we may not realize the anticipated benefits of the merger with Coterra or successfully integrate the two companies; and any of the other risks and uncertainties discussed in Devon’s 2025 Annual Report on Form 10-K (the “2025 Form 10-K”) or other filings with the SEC.
The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above as well as those described elsewhere in the 2025 Form 10-K and in other documents we file from time to time with the SEC. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the 2025 Form 10-K and in other documents we file from time to time with the SEC. All subsequent written and oral forward-looking statements attributable to Devon, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford - TM3EB9F0WO901/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesDevon acquires 16,300 undeveloped acres in Delaware Basin for $2.6 billionAnalysts raise concerns over high price per drilling location, calling it 'eye watering'Acreage offers favorable lease terms, sits near Devon's top assetsMay 21 (Reuters) - Shale producer Devon Energy (DVN.N), opens new tab on Thursday said it has acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for about $2.6 billion through a federal lease, strengthening its presence in the top U.S. shale play.
The move is a major step for Devon to deepen its position in the Delaware, part of the broader Permian Basin spanning West Texas and New Mexico, just weeks after closing its $58 billion merger with Coterra Energy. Shares of Devon closed down about 2.5% as some analysts expressed concern that the company had overpaid.
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The transaction adds about 400 net drilling locations normalized to two-mile laterals, Devon said. That implies a price of about $6.5 million per net drilling location, which two analysts said was surprisingly high.
"While we understand the need to continue bolstering inventory ... we believe investors will be surprised by the sticker price," Matt Portillo, an analyst with TPH & Co, said in a research note.
The price is "eye watering compared to historical M&A in the Permian," RBC Capital Markets analyst Scott Hanold said in a note. The leases are mainly in three sections of the basin that have no existing development, and one is near Devon's best-performing asset, Hanold said.
NEW AREA COMPLEMENTS EXISTING HOLDINGSThe acreage sits next to Devon's existing operations, letting the company leverage established infrastructure and drill longer laterals, it said.
"This area has some of the best wells, best economics in the entire basin. It's like virgin rock," said Chris Atherton, CEO of Houston-based Efficient Markets, a platform that facilitated the sale on behalf of the Bureau of Land Management.
He noted that the area was in New Mexico's Potash Area, where oil and gas drilling is generally heavily restricted in order to protect potash mining interests.
"It was a knife fight. It was hyper competitive. The biggest companies in the U.S. were competing over the absolute best rock," Atherton said, referring to the leasing process.
The U.S. Bureau of Land Management leases carry an 87.5% net revenue interest and 10-year terms across all depths, which Devon said offers more favorable terms and lower royalty burdens than typical state or private leases in the region.
Devon said it will fund the acquisition using cash on hand. Total cash at the end of the first quarter was $1.8 billion.
Reporting by Pranav Mathur in Bengaluru and Sheila Dang, Arathy Somasekhar and Georgina McCartney in Houston; Editing by Sahal Muhammed, Nathan Crooks , Bill Berkrot and Mark Porter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HOUSTON, May 22, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) (“Devon”) and Coterra Energy Inc. (formerly NYSE: CTRA) (“Coterra”) today announced that, in connection with the completed merger of Coterra, with Coterra surviving as a direct, wholly owned subsidiary of Devon, Devon has commenced offers to Eligible Holders (as defined herein) to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Coterra as set forth in the table below (the “Existing Coterra Notes”) for (1) new notes issued by Devon (the “New Devon Notes”) and (2) cash.
The following table sets forth the Exchange Consideration and Total Exchange Consideration for each series of Existing Coterra Notes:
Title of Series CUSIP Number ISIN Maturity Date Aggregate Principal Amount Outstanding Exchange Consideration(1) Total Exchange Consideration(2)3.90% Senior Notes due 2027 127097AE3 /
U12246AB7 / 127097AG8 US127097AE33 / USU12246AB74 / US127097AG80 May 15, 2027 $687,217,000 $970 principal amount of New Devon 3.90% Senior Notes due 2027 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash3.90% Senior Notes due 2027(3) 171798AD3 US171798AD34 May 15, 2027 $62,718,000 $970 principal amount of New Devon 3.90% Senior Notes due 2027 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash4.375% Senior Notes due 2029 127097AH6 / U12246AC5 / 127097AK9 US127097AH63 / USU12246AC57 / US127097AK92 March 15, 2029 $433,171,000 $970 principal amount of New Devon 4.375% Senior Notes due 2029 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash4.375% Senior Notes due 2029(3) 171798AE1 US171798AE17 March 15, 2029 $66,812,000 $970 principal amount of New Devon 4.375% Senior Notes due 2029 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash5.60% Senior Notes due 2034 127097AL7 US127097AL75 March 15, 2034 $500,000,000 $970 principal amount of New Devon 5.60% Senior Notes due 2034 $1,000 principal amount of New Devon 5.60% Senior Notes due 2034 and $1.00 in cash5.40% Senior Notes due 2035 127097AM5 US127097AM58 February 15, 2035 $750,000,000 $970 principal amount of New Devon 5.40% Senior Notes due 2035 $1,000 principal amount of New Devon 5.40% Senior Notes due 2035 and $1.00 in cash5.90% Senior Notes due 2055 127097AN3 US127097AN32 February 15, 2055 $750,000,000 $970 principal amount of New Devon 5.90% Senior Notes due 2055 $1,000 principal amount of New Devon 5.90% Senior Notes due 2055 and $1.00 in cash ______________________________
(1)For each $1,000 principal amount of Existing Coterra Notes validly tendered after the Early Tender Date (as defined herein) but at or before the Expiration Date (as defined herein), not validly withdrawn and accepted for exchange.(2)For each $1,000 principal amount of Existing Coterra Notes validly tendered at or before the Early Tender Date, not validly withdrawn and accepted for exchange.(3)Represents senior notes issued by Coterra Energy Operating Co., an indirect wholly owned subsidiary of Devon previously known as Cimarex Energy Co. (the “Existing Coterra OpCo Notes”). Concurrently with the Exchange Offers being made by Devon, Coterra is, upon Devon’s request, soliciting consents from Eligible Holders (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the corresponding indentures governing the Existing Coterra Notes (other than the Existing Coterra OpCo Notes) to eliminate certain of the covenants, restrictive provisions and events of default from such indentures (with respect to the corresponding indenture for such Existing Coterra Notes, the “Proposed Amendments”). Eligible Holders of Existing Coterra Notes may deliver their consent to the Proposed Amendments to the corresponding indenture for the applicable class only by tendering Existing Coterra Notes of the applicable series in the Exchange Offers and Consent Solicitations. Eligible Holders may not deliver a consent in a Consent Solicitation without tendering Existing Coterra Notes in the applicable Exchange Offer and Eligible Holders may not tender Existing Coterra Notes without also having been deemed to deliver a consent.
Notwithstanding anything herein to the contrary, Coterra is not soliciting consents of Eligible Holders of the Existing Coterra OpCo Notes in connection with the Exchange Offers and Consent Solicitations. The Existing Coterra OpCo Notes are not subject to the Consent Solicitations.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated as of May 22, 2026 (as it may be amended or supplemented, the “Offering Memorandum and Consent Solicitation Statement”). Devon, in its sole discretion, may terminate, withdraw, amend or extend any of the Exchange Offers, subject to the terms and conditions set forth in the Offering Memorandum and Consent Solicitation Statement. Any such termination, withdrawal, amendment or extension by Devon will automatically terminate, withdraw, amend or extend the corresponding Consent Solicitation, as applicable.
In addition, each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although Devon may waive such condition at any time with respect to an Exchange Offer. Any waiver of a condition by Devon with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation.
Eligible Holders who validly tender (and do not validly withdraw) their Existing Coterra Notes at or before to 5:00 p.m., New York City time, on June 5, 2026, unless extended (the “Early Tender Date”), will be eligible to receive, on the settlement date, the applicable Total Exchange Consideration as set forth in the table above for all such Existing Coterra Notes that are accepted. Eligible Holders who validly tender (and do not validly withdraw) their Existing Coterra Notes after the Early Tender Date but at or before 5:00 p.m., New York City time, on June 23, 2026, unless extended (the “Expiration Date”), will be eligible to receive, on the settlement date, the applicable Exchange Consideration as set forth in the table above for all such Existing Coterra Notes that are accepted. The settlement date will be promptly following the Expiration Date and is currently expected to occur within two business days after the Expiration Date.
The Exchange Offers and Consent Solicitations will only be made, and documents relating to the Exchange Offers and Consent Solicitations will only be distributed, to holders of Existing Coterra Notes who complete and return an eligibility letter confirming that they are persons (a) in the United States who are reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or (b) that are outside the United States who are not “U.S. persons” as defined in Rule 902 under the Securities Act and who are eligible to participate in the Exchange Offer pursuant to the laws of the applicable jurisdiction, as set forth in the eligibility letter (“Eligible Holders”).
Eligible Holders of Existing Coterra Notes who are located in or a resident of Canada must also complete and return a Canadian supplemental eligibility letter to D.F. King & Co., Inc. (the “Information Agent” and the “Exchange Agent”) establishing its eligibility to participate in the Exchange Offers and providing supplemental information required for Canadian securities regulatory reporting purposes. Each holder of Existing Coterra Notes will, by participating in any Exchange Offer, be deemed to represent and warrant that it is not located in or a resident of any province or territory of Canada, and that it is not tendering any Existing Coterra Notes on behalf of a beneficial owner that is located in or a resident of Canada, unless either: (i) such holder has completed and returned a Canadian supplemental eligibility letter to the Information Agent, or (ii) such holder is an account manager outside Canada acting on behalf of a Canadian beneficial owner on a fully-discretionary basis, and no acts in furtherance of the exchange of such beneficial owner’s Existing Coterra Notes take place in Canada.
The complete terms and conditions of the Exchange Offers and Consent Solicitations are described in the Offering Memorandum and Consent Solicitation Statement, a copy of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the Exchange Agent and Information Agent in connection with the Exchange Offers and Consent Solicitations, by sending an email to [email protected] or by calling (877) 478-5045 (U.S. toll-free) or (212) 434-0035 (banks and brokers). The eligibility letter is available electronically at: www.dfking.com/dvn.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. This press release should not be construed as an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any Devon securities or other securities by Coterra. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offers and Consent Solicitations are being made to Eligible Holders solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as is permitted under applicable law.
The New Devon Notes have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act or any state or foreign securities laws. Therefore, the New Devon Notes may not be offered or sold in the United States or to any U.S. person absent registration, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In connection with the Exchange Offers, Devon will enter into a registration rights agreement, pursuant to which Devon will be obligated to use commercially reasonable efforts to file with the SEC and cause to become effective a registration statement with respect to an offer to exchange each series of New Devon Notes for new notes within 450 days of the settlement date. In addition, Devon has agreed to use commercially reasonable efforts to file a shelf registration statement to cover resales of the New Devon Notes under the Securities Act in certain circumstances.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts Daniel Guffey, 281-589-4875Chris Carr, 405-228-2496Hannah Stuckey, 281-589-4983Wade Browne, 405-228-7240 Media Contact Michelle Hindmarch, 405-552-7460 Stephen Flaherty, 281-589-4826 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of federal securities laws. Such statements include those concerning statements about the timing of the Exchange Offers and Consent Solicitations, including the expected settlement date and the satisfaction or waiver of certain conditions to the Exchange Offers and the Consent Solicitations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: risks relating to the terms and timing of the Exchange Offers and the Consent Solicitations, the number of Existing Coterra Notes tendered and not validly withdrawn, conditions in financial markets, investor response to the Exchange Offers and the Consent Solicitations, and any other risks and uncertainties discussed in the Offering Memorandum and Consent Solicitation Statement. The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the Offering Memorandum and Consent Solicitation Statement. All subsequent written and oral forward-looking statements attributable to Devon, Coterra or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Devon Energy (DVN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this oil and gas exploration company have returned -2.2%, compared to the Zacks S&P 500 composite's +5.5% change. During this period, the Zacks Oil and Gas - Exploration and Production - United States industry, which Devon Energy falls in, has gained 2.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.34 per share for the current quarter, representing a year-over-year change of +59.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.4%.
The consensus earnings estimate of $5.05 for the current fiscal year indicates a year-over-year change of +28.8%. This estimate has changed +8.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.39 indicates a change of -13.1% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Devon Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Devon Energy, the consensus sales estimate of $4.62 billion for the current quarter points to a year-over-year change of +7.9%. The $18.53 billion and $19.31 billion estimates for the current and next fiscal years indicate changes of +7.8% and +4.2%, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Devon Energy has received a roughly $8 billion offer from money manager Stone Ridge Asset Management for its Marcellus shale assets, four people familiar with the matter said.
On June 01, 2026, Devon Energy Corp DVN shares rose 4.1% to a current price of $46.31. This move contrasts with the stock's 52-week range of $30.24 to $52.71, illustrating significant volatility over the past year.
GF Value™ verdict: Current price is $46.31, which is 2.7% below the $47.58 GF Value™ estimate.GF Score™: 79/100, indicating the stock is above average in quality and potential.Most notable signal: Insiders sold $4.4M worth of shares in the last three months, suggesting caution. Is DVN Overvalued or Undervalued? According to the GF Value™, Devon Energy Corp is currently trading at $46.31, which is 2.7% below its estimated fair value of $47.58. This implies a modest margin of safety for potential investors. Given that the GF Valuation label indicates the stock is fairly valued, it suggests that while the stock is not significantly undervalued, there is still a slight opportunity for appreciation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Being slightly undervalued presents a potential opportunity for investors, but it is essential to remain cautious due to the recent insider selling activity, which might indicate that those closer to the company foresee potential challenges ahead. As such, while the stock presents a small margin for upside, investors should consider broader market conditions and company fundamentals before making decisions.
How Does DVN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.9x 7.9x Forward P/E 8.8x - Currently, Devon Energy's P/E (TTM) of 12.9x is significantly above its 5-year median P/E of 7.9x, indicating that the stock is trading at a higher valuation compared to its historical averages. The forward P/E of 8.8x suggests a potentially lower valuation in the future, aligning more closely with historical norms. This P/E analysis supports the GF Value™ verdict that the stock is fairly valued, as the elevated P/E ratio implies caution regarding future earnings growth and market expectations.
What Does DVN's GF Score™ Tell Us? Metric Rating GF Score™ 79 Financial Strength 6/10 Profitability 7/10 Growth 7/10 Valuation 9/10 Momentum 3/10 The GF Score™ of 79 indicates that Devon Energy is positioned above average compared to its peers. The strongest aspects of the company are its Valuation rank of 9/10 and Profitability and Growth ranks of 7/10, reflecting a robust business model and effective management of resources. However, the Momentum rank of 3/10 suggests that the stock may not be experiencing favorable price trends, which could be a point of concern for potential investors.
What Are Insiders Doing with DVN Stock? In the last three months, insiders at Devon Energy sold $4.4 million worth of shares, with no reported buying activities. This trend of selling may indicate a lack of confidence among insiders regarding the company’s near-term prospects. Typically, when insiders are selling, it may suggest that they believe the stock is fully valued or that they anticipate challenges ahead. Investors may want to monitor insider activities closely as part of their overall assessment of the stock.
What This Means for Investors Overall, Devon Energy Corp appears to be fairly valued based on the current GF Value™ assessment, with a slight margin of safety present. However, the recent insider selling and lower momentum rank warrant caution. Investors should take these factors into account when considering their position in Devon Energy.
For the complete analysis, visit the Devon Energy Corp DVN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is DVN's GF Score™?
DVN's GF Score™ is 79/100, indicating it ranks above average in quality and potential for long-term returns.
Is DVN overvalued or undervalued?
DVN is considered fairly valued, with its current price of $46.31 being 2.7% below the GF Value™ estimate of $47.58.
What is DVN's P/E ratio?
DVN's current P/E (TTM) is 12.9x, which is significantly above its 5-year median P/E of 7.9x, indicating a higher valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Devon Energy (DVN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and gas exploration company have returned -9.7% over the past month versus the Zacks S&P 500 composite's +6.3% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Devon Energy belongs, has lost 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Devon Energy is expected to post earnings of $1.25 per share for the current quarter, representing a year-over-year change of +48.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.8%.
The consensus earnings estimate of $4.44 for the current fiscal year indicates a year-over-year change of +13.3%. This estimate has changed -26.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.34 indicates a change of -2.1% from what Devon Energy is expected to report a year ago. Over the past month, the estimate has changed -6.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Devon Energy is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Devon Energy, the consensus sales estimate for the current quarter of $6.24 billion indicates a year-over-year change of +45.6%. For the current and next fiscal years, $23.95 billion and $25.78 billion estimates indicate +39.3% and +7.6% changes, respectively.
Last Reported Results and Surprise HistoryDevon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of -14.5%. EPS of $1.04 for the same period compares with $1.21 a year ago.
Compared to the Zacks Consensus Estimate of $4.16 billion, the reported revenues represent a surprise of -8.48%. The EPS surprise was +4%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Devon Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Devon Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
A month has gone by since the last earnings report for Devon Energy (DVN - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Devon Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Devon Energy's Q1 Earnings Beat Estimates, Coterra Merger on Course
Devon Energy Corp. reported first-quarter 2026 earnings per share (EPS) of $1.04, surpassing the Zacks Consensus Estimate of $1 by 4%. The metric was down 14% year over year.
GAAP EPS in the reported quarter was 19 cents compared with 77 cents in the year-ago quarter. The difference between GAAP and operating earnings in the first quarter was due to an impact of 81 cents from fair value changes in financial instruments, 1 cent for asset and exploration impairments, and 3 cents from restructuring and transaction costs.
DVN’s Q1 Revenue DetailsTotal revenues for the quarter were $3.80 billion, which lagged the Zacks Consensus Estimate of $4.16 billion by 8.5%. The top line decreased 14.5% from the year-ago quarter’s figure
Production at DVNNet production in the first quarter totaled 833,000 barrels of oil equivalent per day (Boe/d), up 2.2% year over year. The production volume was within the guided range of 823,000-843,000 Boe/d. Improvement in production volumes from the Delaware Basin boosted the metric.
Natural gas liquids production increased 7.4% year over year to 218,000 barrels per day (Bbl/d). Oil production amounted to 387,000 Bbl/d, down marginally by 0.2% on a year-over-year basis, due to a weaker contribution from the Delaware Basin.
DVN’s Realized PricesRealized oil prices (including cash settlements) for the quarter were $67.94 per barrel, down 1.7% from $69.15 in the year-ago period. Realized prices for natural gas liquids were $17.80 per barrel, down 18.8% from $21.93 in the prior-year quarter.
Realized gas prices were $1.68 per thousand cubic feet, indicating a decline of 32.3% from $2.48 a year ago.
Total oil equivalent realized prices, including cash settlements, were $38.94 per Boe, down nearly 8.3% year over year.
Highlights of DVN’s Q1 ReleaseTotal production expenses in the first quarter were $894 million, down 19.7% year over year.
Devon Energy bought back $69 million worth of shares in the first quarter. Looking ahead, management has outlined plans to introduce a new share repurchase program exceeding $5 billion and to raise the quarterly fixed dividend, subject to board approval following the completion of the Coterra merger.
Devon Energy’s Merger UpdateOn Feb. 2, 2026, Devon Energy agreed to merge with Coterra Energy in an all-stock deal, creating one of the world’s largest shale operators with a strong foothold in the core of the Delaware Basin. The combined company, which will retain the Devon Energy name, is expected to drive significant shareholder value through greater scale, improved margins, higher free cash flow and about $1 billion in annual pre-tax synergies by the end of 2027.
The merger received shareholder approval on May 4 and is expected to close around May 7, 2026. After completion, Devon Energy’s shareholders will hold roughly 54% of the combined entity, while Coterra/’s shareholders will own about 46% on a fully diluted basis.
Financial Highlights of DVNAs of March 31, 2026, the company had cash and cash equivalents (including restricted cash) of $1.81 billion compared with $1.43 billion as of Dec. 31, 2025.
Long-term debt amounted to $7.387 billion as of March 31, 2026, down from $7.391 billion as of Dec. 31, 2025.
Devon Energy’s net cash from operating activities was $1.65 billion in first-quarter 2026 compared with $1.94 billion in first-quarter 2025. Capital expenditures in first-quarter totaled $839 million, down $934 million invested in first-quarter 2025.
Devon Energy’s GuidanceSecond-quarter production is expected in the range of 851,000-868,000 Boe/d and capital spending is estimated in the band of $875-$925 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.84% due to these changes.
VGM ScoresCurrently, Devon Energy has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Devon Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
HOUSTON, June 08, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corporation (NYSE: DVN) (“Devon”) today announced that, in connection with the previously announced offers to Eligible Holders (as defined herein) to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Coterra Energy Inc., a direct, wholly owned subsidiary of Devon (“Coterra”), as set forth in the table below (the “Existing Coterra Notes”) for (1) new notes issued by Devon (the “New Devon Notes”) and (2) cash, and solicitations of consents by Coterra from Eligible Holders (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the corresponding indentures governing the Existing Coterra Notes (other than the Existing Coterra OpCo Notes (as defined herein)) (with respect to the corresponding indenture for such Existing Coterra Notes, the “Proposed Amendments”), as of 5:00 p.m., New York City time, on June 5, 2026 (the “Early Tender Date”), the following principal amounts of each series of Existing Coterra Notes have been validly tendered and not validly withdrawn (and consents thereby have been validly given and not validly revoked):
Notes Tendered at Early Tender DateTitle of Series Aggregate Principal Amount Outstanding Principal Amount Percentage3.90% Senior Notes due 2027 $687,217,000 $585,354,000 85.18%3.90% Senior Notes due 2027(1) $62,718,000 $41,244,000 65.76%4.375% Senior Notes due 2029 $433,171,000 $385,958,000 89.10%4.375% Senior Notes due 2029(1) $66,812,000 $61,594,000 92.19%5.60% Senior Notes due 2034 $500,000,000 $465,053,000 93.01%5.40% Senior Notes due 2035 $750,000,000 $669,133,000 89.22%5.90% Senior Notes due 2055 $750,000,000 $733,342,000 97.78% ________________________________
(1) Represents senior notes issued by Coterra Energy Operating Co., an indirect wholly owned subsidiary of Devon previously known as Cimarex Energy Co. (the “Existing Coterra OpCo Notes”).
Coterra has received the requisite number of consents to adopt the Proposed Amendments with respect to each of the five outstanding series of Existing Coterra Notes that are subject to the Consent Solicitations. Notwithstanding anything herein to the contrary, the Existing Coterra OpCo Notes are not subject to the Consent Solicitations. Accordingly, Coterra and the trustee for each such outstanding series of Existing Coterra Notes have executed and delivered a supplemental indenture amending the indentures governing the Existing Coterra Notes effecting the Proposed Amendments, which such supplemental indenture will become operative on the settlement date, which is expected to occur within two business days after the Expiration Date (as defined herein).
Tendered Existing Coterra Notes may no longer be withdrawn.
Devon has also announced that the previous deadline for Eligible Holders to tender their Existing Coterra Notes and be eligible to receive, for each $1,000 principal amount of Existing Coterra Notes, the applicable consideration set out in the column titled “Total Exchange Consideration” in the table below has been extended to the Expiration Date. As a result, the consideration to be paid for Existing Coterra Notes validly tendered (i) at or prior to the Early Tender Date and (ii) following the Early Tender Date, but at or prior to the Expiration Date, will be the same. Payment is expected to be made on the settlement date.
Title of Series CUSIP Number ISIN Aggregate Principal Amount Outstanding Total Exchange Consideration(1)3.90% Senior Notes due 2027 127097AE3 /
U12246AB7 / 127097AG8 US127097AE33 / USU12246AB74 / US127097AG80 $687,217,000 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash3.90% Senior Notes due 2027(2) 171798AD3 US171798AD34 $62,718,000 $1,000 principal amount of New Devon 3.90% Senior Notes due 2027 and $1.00 in cash4.375% Senior Notes due 2029 127097AH6 / U12246AC5 / 127097AK9 US127097AH63 / USU12246AC57 / US127097AK92 $433,171,000 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash4.375% Senior Notes due 2029(2) 171798AE1 US171798AE17 $66,812,000 $1,000 principal amount of New Devon 4.375% Senior Notes due 2029 and $1.00 in cash5.60% Senior Notes due 2034 127097AL7 US127097AL75 $500,000,000 $1,000 principal amount of New Devon 5.60% Senior Notes due 2034 and $1.00 in cash5.40% Senior Notes due 2035 127097AM5 US127097AM58 $750,000,000 $1,000 principal amount of New Devon 5.40% Senior Notes due 2035 and $1.00 in cash5.90% Senior Notes due 2055 127097AN3 US127097AN32 $750,000,000 $1,000 principal amount of New Devon 5.90% Senior Notes due 2055 and $1.00 in cash ________________________________
(1) For each $1,000 principal amount of Existing Coterra Notes validly tendered at or before the Expiration Date, not validly withdrawn and accepted for exchange.
(2) Represents the Existing Coterra OpCo Notes.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated as of May 22, 2026 (as amended by this press release, the “Offering Memorandum and Consent Solicitation Statement”). Each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although Devon may waive such condition at any time with respect to an Exchange Offer. Any waiver of a condition by Devon with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation. Devon, in its sole discretion, may terminate, withdraw, amend or extend any of the Exchange Offers, subject to the terms and conditions set forth in the Offering Memorandum and Consent Solicitation Statement. Any such termination, withdrawal, amendment or extension by Devon will automatically terminate, withdraw, amend or extend the corresponding Consent Solicitation, as applicable.
The Exchange Offers and Consent Solicitations will expire at 5:00 p.m., New York City time, on June 23, 2026, unless extended (the “Expiration Date”).
The Exchange Offers and Consent Solicitations are only being made, and documents relating to the Exchange Offers and Consent Solicitations are only being distributed, to holders of Existing Coterra Notes who complete and return an eligibility letter confirming that they are persons (a) in the United States who are reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or (b) that are outside the United States who are not “U.S. persons” as defined in Rule 902 under the Securities Act and who are eligible to participate in the Exchange Offer pursuant to the laws of the applicable jurisdiction, as set forth in the eligibility letter (“Eligible Holders”).
Eligible Holders of Existing Coterra Notes who are located in or a resident of Canada must also complete and return a Canadian supplemental eligibility letter to D.F. King & Co., Inc. (the “Information Agent” and the “Exchange Agent”) establishing its eligibility to participate in the Exchange Offers and providing supplemental information required for Canadian securities regulatory reporting purposes. Each holder of Existing Coterra Notes will, by participating in any Exchange Offer, be deemed to represent and warrant that it is not located in or a resident of any province or territory of Canada, and that it is not tendering any Existing Coterra Notes on behalf of a beneficial owner that is located in or a resident of Canada, unless either: (i) such holder has completed and returned a Canadian supplemental eligibility letter to the Information Agent, or (ii) such holder is an account manager outside Canada acting on behalf of a Canadian beneficial owner on a fully-discretionary basis, and no acts in furtherance of the exchange of such beneficial owner’s Existing Coterra Notes take place in Canada.
The complete terms and conditions of the Exchange Offers and Consent Solicitations are described in the Offering Memorandum and Consent Solicitation Statement, a copy of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the Exchange Agent and Information Agent in connection with the Exchange Offers and Consent Solicitations, by sending an email to [email protected] or by calling (877) 478-5045 (U.S. toll-free) or (212) 434-0035 (banks and brokers). The eligibility letter is available electronically at: www.dfking.com/dvn.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. This press release should not be construed as an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any Devon securities or other securities by Coterra. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offers and Consent Solicitations are being made to Eligible Holders solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as is permitted under applicable law.
The New Devon Notes have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act or any state or foreign securities laws. Therefore, the New Devon Notes may not be offered or sold in the United States or to any U.S. person absent registration, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In connection with the Exchange Offers, Devon expects to enter into a registration rights agreement, pursuant to which Devon will be obligated to use commercially reasonable efforts to file with the SEC and cause to become effective a registration statement with respect to an offer to exchange each series of New Devon Notes for new notes within 450 days of the settlement date. In addition, Devon has agreed to use commercially reasonable efforts to file a shelf registration statement to cover resales of the New Devon Notes under the Securities Act in certain circumstances.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio with assets in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, Williston Basin, anchored by a world-class position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate resilient free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Investor Contacts
Daniel Guffey, 281-589-4875
Hannah Stuckey, 281-589-4983
Chris Carr, 405-228-2496
Wade Browne, 405-228-7240 Media Contact
Michelle Hindmarch, 405-552-7460
Stephen Flaherty, 281-589-4826 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of federal securities laws. Such statements include those concerning statements about the timing of the Exchange Offers and Consent Solicitations, including the expected settlement date and the satisfaction or waiver of certain conditions to the Exchange Offers and the Consent Solicitations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Consequently, actual future results could differ materially and adversely from our expectations due to a number of factors, including, but not limited to: risks relating to the terms and timing of the Exchange Offers and the Consent Solicitations, the number of Existing Coterra Notes tendered and not validly withdrawn, conditions in financial markets, investor response to the Exchange Offers and the Consent Solicitations, and any other risks and uncertainties discussed in the Offering Memorandum and Consent Solicitation Statement. The forward-looking statements included in this press release speak only as of the date of this press release, represent management’s current reasonable expectations as of the date of this press release and are subject to the risks and uncertainties identified above. We cannot guarantee the accuracy of our forward-looking statements, and readers are urged to carefully review and consider the various disclosures made in the Offering Memorandum and Consent Solicitation Statement. All subsequent written and oral forward-looking statements attributable to Devon, Coterra or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Separation vessel at the Devon Enrgy SAGD plant under construction south of Fort MacMurray in north Alberta. (Photo by Adrian Greeman/Construction Photography/Avalon/Getty Images)
Getty Images
Just a few short weeks after completing a $58B merger with Coterra Energy earlier in May, Devon Energy received an offer of $8B for its shale assets in the Marcellus region of Pennsylvania. The offer, from money manager Stone Ridge Asset Management, covers about 190,000 net acres and could become the largest asset-backed securitization funding ever attempted in the United States oil and gas sector. (Source).
As noted in Business News Today, the Coterra merger gave Devon both assets and exposure across the Marcellus, Anadarko, Eagle Ford and Williston Basins, with the attendant risks and opportunities. Devon must now show that it can handle such varied assets, or else divest itself of those not related to its core business.
The Marcellus assets are expected to account for approximately twenty percent of Devon’s 1.6M barrels of oil equivalent (boe)/day production forecast in 2026. (Source). Part of the importance of the Stone Ridge offer is that it provides a clear price point for Devon’s Marcellus assets, and not a theoretical framework for discussion of value. While Devon DEO Clay Gaspar has indicated that Devon might divert some non-core positions, the company recently has been in an expansion mode. On May 20 it was the biggest buyer of oil and gas drilling rights on federal land in New Mexico and Texas at an auction held by the federal government. In fact, Devon was responsible for $2.5B out of the total $4B sale, a record for such auctions.
Regardless of whether Devon accepts the Stone Ridge offer, the fact of the offer itself shows the value of such wells in Pennsylvania. As of February 2026, the Keystone State has 281,000 wells which produce an average of 1,073,895 million cubic feet (mcf) per natural gas well. (Source). That makes Pennsylvania the second largest producer of natural gas in the United States, accounting for approximately 19% of the national total. (Source). This is an extraordinary statistic given that approximately twenty years ago Pennsylvania had almost no natural gas industry at all.
Pennsylvania’s natural gas reserves doubled from 2013 to 2023 and now reaches an estimate of 101 trillion cubic feel (Tcf). (Source). As the state uses only about one-quarter of the natural gas that it produces, Pennsylvania truly becomes the “keystone” for surrounding states in providing natural gas, especially to states north and east like New York, which has plentiful natural gas reserves but chooses not to develop them, or New Jersey which has limited reserves.
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In addition, the Marcellus Basin assets have demonstrated low decline rates. As such there is talk that these assets might lend themselves to securitization of individual wells, which could be appealing to potential investors looking for an interest in energy assets. This is made possible by the lower depletion rates, making these assets attractive to investors over the longer term. (Source).
Likely then, Stone Ridge would partner with an operator to extract the natural gas while using its financing skill to develop, produce and sell an investment vehicle. If successful, this could help revolutionize the energy industry – at least in the Marcellus – and drive up even further the value of Marcellus assets.
However the Stone Ridge offer for Devon’s Marcellus assets shakes out, it could be that the big winner is Pennsylvania. Unlike New York, Pennsylvania welcomed the energy industry, and that industry may continue to make Pennsylvania a strong place to do business into the middle of the twenty-first century.
HOUSTON, June 09, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today provided an updated outlook for the combined company following the recent completion of its transformative merger with Coterra Energy. Supplemental guidance tables for the combined entity are included below and a presentation is available on the company's website at www.devonenergy.com .
A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford Purchase Licensing Rights, opens new tab
SummaryCompaniesDevon plans to return up to 70% free cash flow to shareholdersExpects to repay $1.25 billion debtStrategic, financial portfolio review underway - CEO Clay GasparJune 9 (Reuters) - Devon Energy (DVN.N), opens new tab on Tuesday forecast its 2026 production to average 1.38 million barrels of oil equivalent per day, after the completion of its merger with Coterra Energy.
The $58 billion merger, completed in May, created one of the largest independent oil and gas producers in the U.S. Its presence in half a dozen regions is led by the Delaware portion of the Permian Basin in Texas and New Mexico.
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The company also forecast full-year capital spending of about $4.9 billion, with more than 60% of it allocated to the Permian Basin, as it focuses activity around its core assets.
Devon said it would provide timely updates as it looks to concentrate the portfolio around its Permian position to improve shareholder returns.
"Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway," CEO Clay Gaspar said.
The shale producer said it aims to return up to 70% of free cash flow to shareholders through a combination of a quarterly fixed dividend of $0.32 per share and its previously announced $8 billion share repurchase program.
Devon said it expected to repay $1.25 billion of debt this year.
It added that it is accelerating merger-related synergies, targeting to capture $600 million in 2027 and $1 billion in annual pre-tax synergies on a run-rate basis by the end of that year.
Last month, Devon acquired 16,300 net undeveloped acres in the core of the Delaware Basin in New Mexico for about $2.6 billion.
Reporting by Sumit Saha in Bengaluru; Editing by Joyjeet Das
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying DVN stock? Here’s what analysts think:
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Devon Energy NYSE:DVN shares climbed more than 6% on Wednesday after analysts responded positively to the company's latest operational update and outlook following its acquisition of Coterra Energy earlier this year.
The rally came after Evercore ISI upgraded Devon to Outperform, citing what it described as a "better-than-expected mid-month update."
Investors also assessed new guidance related to the company's integration of Coterra, which Devon acquired in early May in a deal valued at approximately $58 billion.
The update provided additional details on production expectations, capital spending plans, synergy realization, and shareholder return commitments as the company continues integrating the acquired assets.
Analysts focus on post-acquisition outlookDevon management updated investors on its outlook following the Coterra acquisition, offering pro forma guidance and commentary on expected synergies and portfolio optimization efforts.
BMO Capital reiterated its Outperform rating on Devon and maintained a $65 price target.
The firm said the update included expected mid-June guidance, progress on synergy capture, and additional information regarding portfolio reviews.
According to BMO, the update appeared largely neutral overall but suggested stronger capital efficiency than previously expected.
The firm noted that these benefits were offset by higher operating expenses, increased cash taxes, and weaker pricing at the Waha natural gas hub.
The company also reaffirmed its commitment to returning capital to shareholders.
Devon said it plans to return up to 70% of free cash flow through its previously announced $8 billion share repurchase authorization and its base dividend program.
BMO added that it continues to see significant value in Devon shares and believes improved execution and portfolio optimization could help narrow the valuation gap relative to industry peers.
The company's shareholder return framework remains an important component of the investment thesis for analysts.
Under the current plan, Devon intends to continue directing a substantial portion of free cash flow toward buybacks and dividends while also managing debt levels following the Coterra transaction.
Analysts noted that the company has maintained its commitment to capital discipline despite the scale of the acquisition.
The latest guidance also highlighted ongoing efforts to capture synergies from the merger.
Management indicated that integration initiatives remain on track, providing investors with additional confidence in the transaction's long-term potential.
The company is also reviewing its asset portfolio as part of its broader integration strategy, which could result in further optimization efforts over time.
William Blair analyst Neal Dingmann maintained a Buy rating on Devon, pointing to several factors supporting the company's long-term outlook.
According to Dingmann, Devon's pro forma production outlook and capital spending plans for 2026 appear slightly stronger than current market expectations.
He also noted that the company's shareholder return and debt reduction plans remain consistent with investor expectations.
Dingmann highlighted Devon's increasing focus on the Permian Basin as another positive development.
The company plans to direct significant investment toward the region, a move that could potentially be accompanied by the monetization of non-core assets.
He believes that operating efficiencies, visible synergy capture ahead of the company's 2027 targets, and a large inventory of Permian drilling opportunities support the stock's long-term value proposition.
Shares of Devon Energy (DVN +1.48%) rose on Wednesday after the hydrocarbon exploration specialist provided investors with an updated operational forecast for 2026.
Image source: Getty Images.
Stronger together Devon completed its $58 billion merger with fellow oil and gas producer Coterra Energy in May. The combination created a more financially sound shale operator with a leading presence in the oil-rich Delaware Basin.
The combined company is on track to produce an average of 1.38 million barrels of oil equivalent per day in 2026. To do so, it plans to spend roughly $4.9 billion this year to bring 460 to 480 net wells online.
Today's Change
(
1.48
%) $
0.66
Current Price
$
45.27
Lucrative cash returns for shareholders Devon's operating strategy prioritizes cost-efficiency and free cash flow generation. Management is targeting $1 billion in ongoing annual pre-tax cost savings by the end of 2027. Devon intends to use the cash its wells produce to strengthen its balance sheet by paying off $1.25 billion of debt.
Devon also plans to pass about 70% of its excess cash on to shareowners via a quarterly fixed dividend of $0.32 per share -- representing a forward annual yield of 2.7% based on its current stock price of $46.60 -- and $8 billion in stock buybacks.
"Today's guidance underscores the strength of our newly combined platform as one of the largest and most efficient E&P [exploration and production] companies," CEO Clay Gaspar said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The Chicago-based company’s stock price gained around 12% in the last month, and Snipe expects the momentum to continue.
On May 29, AbbVie announced the European Commission’s authorization of an expanded label for Venetoclax to include additional combinations for previously untreated chronic lymphocytic leukemia.
Don't forget to check out our premarket coverage here
Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, picked U.S. 10 Year Treasury.
SoFi ‘s Liz Young Thomas, meanwhile, recommended the U.S. 2 Year Treasury.
AbbVie, on May 29, announced European Commission authorization of expanded label for Venetoclax to include additional combinations in previously untreated chronic lymphocytic leukemia.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, named Devon Energy Corp (NYSE:DVN) as his final trade.
Devon Energy shares surged on Wednesday after the company issued fresh guidance for 2026 following the completion of its merger with Coterra Energy. The combined business expects to produce about 1.38 million barrels of oil equivalent per day in 2026, with oil output projected at 500,000 barrels per day.
Evercore ISI Group analyst Stephen Richardson upgraded Devon Energy from In-Line to Outperform on Wednesday and set a $54 price target.
Price Action AbbVie shares fell 0.2% to close at $224.95 on Wednesday. Devon Energy shares jumped 5.8% to settle at $46.60 during the session. Photo via Shutterstock
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Devon Energy (DVN - Free Report) closed the most recent trading day at $44.61, moving -4.27% from the previous trading session. This change lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%.
Heading into today, shares of the oil and gas exploration company had lost 0.64% over the past month, lagging the Oils-Energy sector's loss of 0.13% and outpacing the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.19, showcasing a 41.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.19 billion, indicating a 44.44% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.44 per share and revenue of $25 billion, indicating changes of +13.27% and +45.44%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 21.92% downward. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 10.5. Its industry sports an average Forward P/E of 9.87, so one might conclude that Devon Energy is trading at a premium comparatively.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Easterly Government Properties is regaining momentum, with sustainable growth supported by recent accretive acquisitions and a robust development pipeline. DEA reported solid 2025 results: core FFO grew 10.3% year-over-year, and revenue increased 11.2%, despite macro headwinds and a prior dividend cut. Management guides for 3% core FFO growth in 2026, underpinned by a $1.5 billion acquisition pipeline and redevelopment projects coming online through 2027.
WASHINGTON--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA) announced today that the Company will release its first quarter 2026 financial results on April 27, 2026.
A conference call will be held Monday, April 27, 2026 at 11:00am Eastern time. The management team will review first quarter performance, discuss recent events and conduct a question-and-answer session.
Attendees that would like to join the call and ask a question may register here to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call on the Investor Relations section of Easterly’s Investor Relations website at ir.easterlyreit.com.
Shortly after the call, a replay of the call will be available on the Company’s website for up to twelve months.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government and its adjacent partners. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
More News From Easterly Government Properties, Inc.
WASHINGTON--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, announced today that its Board of Directors has approved a quarterly cash dividend of $0.45 per common share. The dividend will be payable on May 21, 2026 to shareholders of record on May 7, 2026.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government and its adjacent partners. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
More News From Easterly Government Properties, Inc.
HG (OTCMKTS:STLY – Get Free Report) and Easterly Government Properties (NYSE:DEA – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Profitability This table compares HG and Easterly Government Properties’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets HG 10.38% 3.91% 2.97% Easterly Government Properties 3.87% 0.94% 0.39% Valuation and Earnings This table compares HG and Easterly Government Properties”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio HG $14.74 million 1.46 $1.53 million $0.35 12.14 Easterly Government Properties $336.10 million 3.25 $13.00 million $0.28 84.15 Easterly Government Properties has higher revenue and earnings than HG. HG is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility HG has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Analyst Ratings This is a summary of recent recommendations and price targets for HG and Easterly Government Properties, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score HG 0 0 0 0 0.00 Easterly Government Properties 1 3 1 0 2.00 Easterly Government Properties has a consensus target price of $23.49, suggesting a potential downside of 0.30%. Given Easterly Government Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Easterly Government Properties is more favorable than HG.
Institutional & Insider Ownership 1.7% of HG shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 75.0% of HG shares are owned by insiders. Comparatively, 6.5% of Easterly Government Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary Easterly Government Properties beats HG on 9 of the 14 factors compared between the two stocks.
About HG (Get Free Report)
HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.
About Easterly Government Properties (Get Free Report)
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).
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Orion Office REIT (NYSE:ONL – Get Free Report) and Easterly Government Properties (NYSE:DEA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership 80.0% of Orion Office REIT shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 1.6% of Orion Office REIT shares are owned by company insiders. Comparatively, 6.5% of Easterly Government Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings This table compares Orion Office REIT and Easterly Government Properties”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Orion Office REIT $147.65 million 0.96 -$139.31 million ($2.49) -1.01 Easterly Government Properties $336.10 million 3.25 $13.00 million $0.28 84.15 Easterly Government Properties has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Orion Office REIT and Easterly Government Properties’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Orion Office REIT -94.35% -20.13% -11.12% Easterly Government Properties 3.87% 0.94% 0.39% Analyst Ratings This is a breakdown of recent recommendations and price targets for Orion Office REIT and Easterly Government Properties, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Orion Office REIT 1 1 1 0 2.00 Easterly Government Properties 1 3 1 0 2.00 Orion Office REIT presently has a consensus target price of $3.00, indicating a potential upside of 19.76%. Easterly Government Properties has a consensus target price of $23.49, indicating a potential downside of 0.30%. Given Orion Office REIT’s higher possible upside, analysts plainly believe Orion Office REIT is more favorable than Easterly Government Properties.
Dividends Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.2%. Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.6%. Orion Office REIT pays out -3.2% of its earnings in the form of a dividend. Easterly Government Properties pays out 642.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility Orion Office REIT has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Summary Easterly Government Properties beats Orion Office REIT on 11 of the 14 factors compared between the two stocks.
About Orion Office REIT (Get Free Report)
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Easterly Government Properties (Get Free Report)
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).
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WASHINGTON--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust (“REIT”) focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, today announced its results of operations for the quarter ended March 31, 2026.
Highlights for the Quarter Ended March 31, 2026:
Net income of $1.4 million, or $0.03 per share on a fully diluted basis Core FFO of $37.1 million, or $0.77 per share on a fully diluted basis Acquired a 297,713 square foot campus leased primarily to the Commonwealth of Virginia with lease expirations ranging from 2027 to 2036. Entered into a mezzanine construction loan agreement to lend $7.0 million to a developer that will accrue interest monthly at a fixed market rate of 12.00% per annum. Issued an aggregate of 94,170 shares of the Company's common stock in settlement of previously entered into forward sales transactions through the Company's $300.0 million ATM Program launched in June 2021 (the “2021 ATM Program”). These shares were then physically settled in the same quarter at a weighted average price per share of $23.01, raising net proceeds to the Company of approximately $2.1 million. “We entered 2026 with clear priorities, and the first quarter demonstrates progress toward them,” said Darrell Crate, President & CEO of Easterly Government Properties. “Stable operating performance and the successful execution of our first mezzanine investment highlight our strategic approach to capital allocation and earnings growth.”
Portfolio Operations
As of March 31, 2026, the Company or its joint venture owned 106 operating properties in the United States encompassing approximately 10.7 million leased square feet, including 93 operating properties that were leased primarily to U.S. Government tenant agencies, eight operating properties leased primarily to tenant agencies of a U.S. state or local government and five operating properties that were entirely leased to private tenants. In addition, the Company wholly owned three properties in development that the Company expects will encompass approximately 0.2 million rentable square feet upon completion.
The first development project, located in Flagstaff, Arizona, is currently under construction and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the United States Judiciary. The second project, located in Fort Myers, Florida, is currently under construction and, once complete, a 25-year lease with the Florida Department of Law Enforcement is expected to commence for their beneficial use. The third project, located in Medford, Oregon, is currently under construction and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the United States Judiciary.
As of March 31, 2026, the portfolio had a weighted average age of 16.9 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 9.4 years.
Acquisitions Activity
Acquisitions
On January 16, 2026, the Company acquired a 297,713 square foot campus consisting of three assets near Richmond, Virginia. The assets are leased primarily to the Commonwealth of Virginia and have lease expirations ranging from 2027 to 2036.
Balance Sheet and Capital Markets Activity
As of March 31, 2026, the Company had total indebtedness of approximately $1.7 billion comprised of $245.1 million outstanding on its senior unsecured revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $200.0 million outstanding on its 2018 term loan facility, $1.0 billion of senior unsecured notes, and $150.5 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). The Company's outstanding debt had a weighted average maturity of 3.9 years and a weighted average interest rate of 4.6%. Further, the Company's Net Debt to total enterprise value was 62.5% and its Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio was 7.3x.
Dividend
On April 22, 2026, the Board of Directors of Easterly approved a cash dividend for the first quarter of 2026 in the amount of $0.45 per common share. The dividend will be payable May 21, 2026 to shareholders of record on May 7, 2026.
Guidance
This guidance is forward-looking and reflects management’s view of current and future market conditions. The Company’s actual results may differ materially from this guidance.
Outlook for the 12 Months Ending December 31, 2026
The Company is raising the lower end of its guidance for full-year 2026 Core FFO per share on a fully diluted basis at a range of $3.06 - $3.12.
Low
High
Net income (loss) per share – fully diluted basis
$
0.36
0.42
Plus: Company’s share of real estate depreciation and amortization
$
2.68
2.68
FFO per share – fully diluted basis
$
3.04
3.10
Plus: Company’s share of depreciation of non-real estate assets
$
0.02
0.02
Core FFO per share – fully diluted basis
$
3.06
3.12
This guidance assumes approximately $50 million of wholly owned acquisitions and $50 - $100 million of gross development-related investment during 2026.
Non-GAAP Supplemental Financial Measures
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. A reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release following the consolidated financial statements. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.
Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.
Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, provision for (recovery of) credit losses, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business.
EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.
Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.
Net Debt and Adjusted Net Debt Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 28 of the Company’s Q1 2026 Supplemental Information Package for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.
Other Definitions
Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.
Conference Call Information
The Company will host a webcast and conference call at 11:00 am Eastern time on April 27, 2026 to review the first quarter 2026 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of the Company’s website. Shortly after the webcast, a replay of the webcast will be available on the Investor Relations section of the Company's website for up to twelve months. Please note that the full text of the press release and supplemental information package are also available through the Company’s website at ir.easterlyreit.com.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
Forward Looking Statements
We make statements in this press release that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions and include our guidance with respect to Net income (loss) and Core FFO per share on a fully diluted basis. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this press release for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties, including as a result of or in connection with any shutdown of the U.S. Government; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness, including failure to refinance current or future indebtedness on favorable terms, or at all, failure to meet the restrictive covenants and requirements in our existing and new debt agreements, fluctuations in interest rates and increased costs to refinance or issue new debt; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and our financial condition and results of operations; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (SEC) on February 23, 2026, and under the heading “Risk Factors” in our other public filings. In addition, our anticipated qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.
Balance Sheet
(Unaudited, in thousands, except share amounts)
March 31, 2026
December 31, 2025
Assets
Real estate properties, net
$
2,738,755
$
2,714,650
Cash and cash equivalents
2,017
23,374
Restricted cash
10,661
10,257
Tenant accounts receivable
73,041
51,493
Investment in unconsolidated real estate venture
304,070
304,721
Real estate loans receivable, net and investment in sales-type lease, net
44,462
34,286
Intangible assets, net
189,534
183,911
Prepaid expenses and other assets
57,520
57,078
Total assets
$
3,420,060
$
3,379,770
Liabilities
Revolving credit facility
245,050
199,050
Term loan facilities, net
297,479
297,200
Notes payable, net
1,019,132
1,018,884
Mortgage notes payable, net
150,054
151,191
Intangible liabilities, net
13,598
11,959
Deferred revenue
230,031
219,201
Interest rate swaps
1,010
3,034
Accounts payable, accrued expenses and other liabilities
108,203
109,686
Total liabilities
2,064,557
2,010,205
Equity
Common stock, par value $0.01, 80,000,000 shares authorized, 46,444,374 and 46,303,469 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively
464
463
Additional paid-in capital
1,961,587
1,958,412
Retained earnings
146,222
144,857
Cumulative dividends
(796,880
)
(776,022
)
Accumulated other comprehensive loss
(2,554
)
(4,578
)
Total stockholders' equity
1,308,839
1,323,132
Non-controlling interest in Operating Partnership
46,664
46,433
Total equity
1,355,503
1,369,565
Total liabilities and equity
$
3,420,060
$
3,379,770
Income Statement
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended
March 31, 2026
March 31, 2025
Revenues
Rental income
$
88,593
$
75,546
Tenant reimbursements
804
1,026
Asset management income
646
622
Other income
1,502
1,481
Total revenues
91,545
78,675
Expenses
Property operating
20,536
17,799
Real estate taxes
8,532
7,957
Depreciation and amortization
33,221
26,797
Acquisition costs
649
307
Corporate general and administrative
8,495
6,215
Provision for (recovery of) credit losses
196
(238
)
Total expenses
71,629
58,837
Other income (expense)
Income from unconsolidated real estate venture
1,664
1,822
Interest expense, net
(20,166
)
(18,377
)
Net income
1,414
3,283
Non-controlling interest in Operating Partnership
(49
)
(156
)
Net income available to Easterly Government
Properties, Inc.
$
1,365
$
3,127
Net income available to Easterly Government
Properties, Inc. per share:
Basic
$
0.02
$
0.07
Diluted
$
0.02
$
0.07
Weighted-average common shares outstanding:
Basic
46,260,517
43,224,145
Diluted
46,453,599
43,372,207
Net income, per share - fully diluted basis
$
0.03
$
0.07
Weighted average common shares outstanding -
fully diluted basis
47,996,434
45,420,667
EBITDA
(Unaudited, in thousands)
Three Months Ended
March 31, 2026
March 31, 2025
Net income
$
1,414
$
3,283
Depreciation and amortization
33,221
26,797
Interest expense
20,166
18,377
Tax expense
111
163
Unconsolidated real estate venture allocated share of above adjustments
2,340
2,341
EBITDA
$
57,252
$
50,961
Pro forma adjustments(1)
188
Pro forma EBITDA
$
57,440
(1) Pro forma assuming a full quarter of operations from the three operating properties acquired in the first quarter of 2026.
FFO and CAD
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended
March 31, 2026
March 31, 2025
Net income
$
1,414
$
3,283
Depreciation of real estate assets
32,955
26,546
Unconsolidated real estate venture allocated share of above adjustments
2,281
2,279
FFO
$
36,650
$
32,108
Adjustments to FFO:
Loss on extinguishment of debt and modification costs
$
-
$
900
Provision for (recovery of) credit losses
196
(238
)
Natural disaster event expense, net of recovery
15
23
Depreciation of non-real estate assets
267
251
Unconsolidated real estate venture allocated share of above adjustments
17
17
Core FFO
$
37,145
$
33,061
FFO, per share - fully diluted basis
$
0.76
$
0.71
Core FFO, per share - fully diluted basis
$
0.77
$
0.73
Core FFO
$
37,145
$
33,061
Straight-line rent and other non-cash adjustments
(2,007
)
251
Amortization of above-/below-market leases
(435
)
(518
)
Amortization of deferred revenue
(3,704
)
(1,762
)
Non-cash interest expense
939
759
Non-cash compensation
2,097
1,421
Natural disaster event expense, net of recovery
(15
)
(23
)
Principal amortization
(1,190
)
(1,127
)
Maintenance capital expenditures
(657
)
(285
)
Contractual tenant improvements
(49
)
(612
)
Unconsolidated real estate venture allocated share of above adjustments
29
(20
)
Cash Available for Distribution (CAD)
$
32,153
$
31,145
Weighted average common shares outstanding - fully diluted basis
47,996,434
45,420,667
Net Debt and Adjusted Net Debt
(Unaudited, in thousands)
March 31, 2026
Total Debt(1)
$
1,720,560
Less: Cash and cash equivalents
(3,964
)
Net Debt
$
1,716,596
Less: Adjustment for development projects(2)
(49,099
)
Adjusted Net Debt
$
1,667,497
1 Excludes unamortized premiums / discounts and deferred financing fees.
2 See definition of Adjusted Net Debt on Page 4 of this release.
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